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TITLE: Reasons for Increasing Debt in Older Americans CONTENT: Why is Debt Increasing Among Older Americans?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nOnce upon a time, the older we got, the less debt we owed. Today, it seems just the opposite. According to the Employment Benefit Research Institute (EBRI):\n* 8.3 percent of households 65 to 74 have debt that represents more than 40 percent of their income.\n* 41 percent of households 65 to 74 have debt tied to their home.\n* 24 percent of households 75 and over have debt tied to their home.\n* 38.5 percent of households 75 and over carry debt overall.\nWhat gives? After a lifetime of hard work and penny-pinching, why are Americans reaching retirement age with more debt than their younger counterparts? In 2016, the average household headed by someone age 55 or older had $73,211 in debt, according to the EBRI. That is staggering!\nTough Time Saving For Retirement\n--------------------------------\nIdeally, it's in our 20's when we start setting aside 10 to 15 percent of our income for retirement savings. The longer we wait -- into our 30's, 40's, or 50's-- the greater that percentage must grow to ensure there's enough in savings to support the cost of living by the time we reach retirement age. Some experts differ on just how much we need, but the safest bet is that whatever your current annual living expenses, assume they'll remain about the same in your retirement years. Yes, some expenses drop off the radar, but you can bet others will crop up to take their place.\nUnfortunately, saving for retirement is far easier said than done. For millions of Americans, it's all they can do just to make ends meet for current living expenses. While setting aside money every month for a retirement fund sounds like a grand idea, it's far more attractive to put that money toward the food they need to put on their tables today.\nLosing Work or Trouble Entering the Job Market\n----------------------------------------------\nIn recent years, as the job market has tightened, older Americans have suffered the consequences. While college graduates may have trouble finding work, older Americans have trouble keeping it. They're then doubly-challenged, as it takes older Americans much longer to re-enter the job market than it does their younger counterparts.\nMedical Expenses\n----------------\nWhile health care insurance and government financial aid programs may help cover most medical expenses, older Americans are still likely to pay something out-of-pocket. For those living on a fixed income, even what sounds like the most negligible of costs can be disruptive to a household budget.\nPaying the Debt of Family Members\n---------------------------------\nNearly 25 percent of Americans 50 and older say they have given money to relatives, or paid relatives' debts directly. And we're not just talking about the most fundamental of living expenses, like rent or food. Older Americans are footing the bill for relatives' student loans, weddings, and down payments on homes. Older Americans are also co-signing for credit cards, which they often end up being held responsible for paying.\nWhile anyone of us can appreciate the generosity of parents, grandparents or other relatives who offer help, it's only a responsible gift to accept from those who have a wealth of resources from which to draw from. Unfortunately, most do not, in which case their financial generosity compromises their own ability to look out for themselves, now and in the future.\nIncreasingly Relying on Credit Cards\n------------------------------------\nLiving off credit cards is nothing new to Americans, but it's a disturbingly increasing trend among the older demographic. Those 50 and older owe an average of $8,278 in credit card debt compared to an average of $6,258 of those under 50.\nJust what are older Americans charging onto these cards?\n* Medical expenses\n* Home repairs\n* Car repairs\n* Rent\/mortgage\n* Groceries\n* Utilities\n* Insurance\n* Debts of family members\nSo, at a time in their lives when they should have the luxury of relaxing into retirement, older Americans are stressing over credit card bills instead.\nHow Can Older Americans Get Out Of Debt?\n----------------------------------------\nIf you're 50+ facing a mountain of debt, or know someone who is, take heart. There are steps that can help:\n* Do not offer financial help to relatives. It does your entire family a disservice when you divert your resources to others at your own expense.\n* Tighten your budget. This certainly seems like a no-brainer, but we all have little expenses here and there that go unchecked. Go through your budget with a fine-tooth comb and cut where you can.\n* Think about career longevity and job security. The fact is, you may need to work past traditional retirement years. Your best chances of doing so depend on career objectives that strengthen a long-term plan. Look into growing fields, such as healthcare, education, and non-profits. Get tech savvy. And network, as you never know when and where the next best job op could come from.\nAs for the money you do have in retirement savings, be mindful of who you entrust with its management. While there are many financial advisors who specialize in senior finances, all training and expertise is not created equal. Research carefully what your potential financial adviser's \"senior designation\" title really means (i.e., training time, testing, etc.). If you're satisfied with its requirement, ask for verification of training completion and certification. END

TITLE: Reasons for Increasing Debt in Older Americans CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Is it True that Women Have More Debt Than Men? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nBack in 1992, a quirky book entitled \"Men Are From Mars, Women Are From Venus\" became a hit and it could not have been more spot on when it comes to the differences between men and women. Not only are the sexes different when it comes to relationships but they also view money differently. Men and women have different ideas when it comes to handling debt as well as spending and saving money. In a recent survey by a consumer credit counseling service, it is estimated that there are more women in debt counseling but men have more trouble repaying what they owe. It was found 6 out of 10 defaults on payments were done by men.\nEven though men and women manage money matters differently, it is important when in a relationship to know that these differences may cause conflicts down the road. To keep a relationship healthy, it is a good idea to help one another and work together as a team. If you are single, then here is your chance to realize your shortcomings and get your financial matters under control - especially your debt.\nHow the Different Sexes View Debt\n---------------------------------\nWomen, in general, tend to be more optimistic with respect to their financial situation. In a poll done by Citigroup of women over the age of 40, a whopping 82 percent believed their financial situation was on the upswing. Was this do to women being \"out to lunch\" on the seriousness of their predicament? According to Lisa Caputo, CEO of Citibank's Women & Co. business, \"When people are optimistic, it's because they've taken the steps to make sure that their own personal financial situation feels good to them.\" Women are more likely to seek out help via credit counseling or using a credit repair company to get them out of debt.\nMen, on the other hand, were found to be more likely to default on payments which could be a result of rising unemployment or decrease in income. Even though, 65 percent of men earn more than women. It is also a known fact that more women than men will seek out professional help when dealing with debt so it seems a man's ego tends to get in the way of him getting the help he may need to get out of debt.\nReasons Women Have More Debt Than Men\n-------------------------------------\nWhen making efforts to deal with credit card debt, women seem to have more difficulties than men. There are a number of factors found to contribute to this:\n* **Women Carry Balances on Their Credit Card Accounts.** In all, 60 percent of women said they carried a balance from one month to the next compared to 51 percent of men.\n* **Women Pay Only the Minimum Payment Due.** According to a recent study, 42 percent of women make a habit of paying only the minimum payment on their credit card accounts, compared to 38 percent of men.\n* **Women Pay Higher Interest Rates on Credit Cards.** When is comes to looking for a new card, just 31 percent of women go rate shopping to get the best deal on a credit card. As a consequence, women pay more in interest than do men.\n* **Women Lack in Paying Off Their Balances Every Month.** Forty-five percent of men tended to pay their balances in full every month, compared to 39 percent of women.\n* **Women Can't Resist a Sale.** According to a study published in the Journal of Financial Planning, 23.7 percent of women and only 4.5 percent of men agree they can't resist a sale.\n* **Women Buy More Unplanned Items.** Noted in that same study, twice as many women as men agreed they buy unplanned items and buy without any true need. Women spend more on impulse.\nBesides those statistics given above, another reason women may have more debt than men is pure math - men make more money than women. Study after study clearly shows there is still a wide gap between the salaries men and women earn. There may be legislation in some states to prohibit this practice but it still does happen. Also, if a woman has to take care of children and work, she really has two jobs and one of them she does not get paid for.\nWhat Can Women Do To Get Out Of Debt\n------------------------------------\nSince we all know that women like to shop, I would strongly suggest you stay away from the mall. Going shopping only tempts you into making purchases you really don't need to make. You will be tempted to put those purchases on your already so-close-to-the limit credit card which is really not helping to pay down your debt.\nAnother suggestion would be to make a list of the monthly expenses that are truly necessary, such as gas for your car, food, utilities, rent\/mortgage payment, car payment and insurance. Any money from your monthly salary that you have left over after paying for these necessities put that money toward paying off the balance on your credit cards. You will be amazed at how quickly you will be able to pay these cards off.\nSeek out professional credit counseling if you feel you cannot go it alone. There is no shame with seeking out moral and expert support from this kind of organization and it just may the thing you need to get you back on your feet.\nJust because you are a woman, does not mean you have to have more debt. If you work hard at saving money and not spending frivolously, you will be able to get out of debt in no time at all. END

TITLE: Is it True that Women Have More Debt Than Men? CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Is it True that Women Have More Debt Than Men? CONTENT: | | | | \n: . END

TITLE: Bankruptcy Abuse Prevention and Consumer Protection Act CONTENT: Bankruptcy Abuse Act Changed Bankruptcy Attorney Liability\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) opened a new era in the history of bankruptcy law and practice. It was passed by Congress and signed into law by President Bush on April 20, 2005.\nOctober 17, 2005 was the day the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 went into full effect, lowering the curtain on the previous era in bankruptcy law. The irony is that when that curtain came down, it crash-landed on the backs of perspective filers and bankruptcy attorneys alike.\nWhat Did the Act Provide?\n-------------------------\nThe BAPCPA gave the U.S. Trustee Program new responsibilities such as:\n* Implementing the new means test to determine whether a debtor is eligible for Chapter 7 (liquidation) or Chapter 13 (repayment plan).\n* Supervising random audits and targeted audits to determine whether a Chapter 7 debtor's bankruptcy documents are accurate.\n* Certifying entities to provide the credit counseling that an individual must receive before filing bankruptcy.\n* Certifying entities to provide the financial education that an individual must receive before discharging debts.\n* Conducting enhanced oversight in small business chapter 11 reorganization cases.\nThe U.S. Trustee Program welcomed the opportunity to further enhance the integrity, effectiveness, and efficiency of the nation's bankruptcy system. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 represented an important development in the Program's efforts to improve bankruptcy procedures.\nHow Did the Act Come About in the First Place?\n----------------------------------------------\nThe new law was the brainchild of such non-legal eagles as lobbyists for credit card companies, and was riddled with hundreds of errors according to Corinne Cooper, professor emerita of law and author of \"Attorney Liability In Bankruptcy (American Bar Association, 2006).\" Ms. Cooper called the law, **\"Death by a Thousand Cuts\"** because there were so many changes that increased a bankruptcy attorney's obligation, which ultimately increased liability.\nHow the Act Affected Bankruptcy Attorneys\n-----------------------------------------\nThe first of these changes is one that puts the attorney on the spot before a perspective client walks in the door. Any attorney with a bankruptcy practice is required to advertise him or herself as a debt relief agency. The language is specifically spelled out in the statute: We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This verbiage is not only for print ads, but must be included anywhere the general public may read about the attorneys services including his\/her web site.\nOn the surface, this appears to be a good thing. However, the scarlet letter advertisement, as Cooper refers to it, is every bit as devastating in its effects as the letter Hester Prynne wore. It's ensnaring grasp lies in the definition of debt relief agency. The statue has redefined the term so broadly, that it now includes attorneys who don't have regular bankruptcy practices. A classic example of this is the Family Law attorney who has just represented a woman in a divorce proceeding. The client's ex-spouse is filing for bankruptcy and the woman goes to her attorney to find out how the bankruptcy will affect her. If the attorney counsels the client, s\/he becomes a debt relief agency and is required to add the advertising verbiage to all print and electronic materials publicizing the practice. To avoid the trap, the attorney would have to direct the client to find a bankruptcy attorney to counsel her. Dollars and cents, it means two attorney fees instead of one.\nThe next minefield that attorneys worked to sidestep was the failure to comply with the new certification and debt relief provisions. There are provisions that must be stated in the contract and forms that must be given to clients by specific times. Failure to comply with these means sanctions and penalties. In some cases, the sanctions are so ambiguously written, as with the debt relief provisions, that no one seems exactly sure when a penalty is triggered. In other instances, the sanction is incredibly harsh. A contract between an attorney and client could become unenforceable because of failure to comply. What's more, there is an additional threat that a trustee may have the power to come after the fee the attorney was paid before the contract became unenforceable.\nHowever, the most abusive part of this anti-abuse law is that attorneys are now prohibited from making certain statements to their clients that they would have made in the past because of an ethical obligation. Cooper points to the instance in which a perspective client doesn't have the money to pay a bankruptcy attorney. In the past, the attorney would have instructed the client that it was perfectly legally to borrow the money to pay for representation as long as the client paid the debt and didn't attempt to discharge it. Under the new statute, an attorney is barred from giving this information to a client or risk being sanctioned.\nThe certification provision for a reaffirmation agreement would be laughable if it were written into a Saturday Night Live skit. But since it's a reality that attorneys must live with, it is far from a laughing matter. Under this provision, when a bankruptcy filer reaffirms a debt after the initial filing, the new statute assumes that the debtor is unable to pay the debt. However, even though that may be the case, the statute still obliges the debtor's attorney to certify that the debtor can pay. Obviously the law assumes that bankruptcy attorneys have the power to predict the future. And we all know what happens when you assume.\nThere were several cases that challenged the law's constitutionality, but all had been dismissed but one. END

TITLE: Who Gets the Debt After Someone Dies CONTENT: Who Pays Credit Card Debt After Death?\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nDealing with credit card companies is never a welcome experience, but particularly so regarding the debt of a deceased loved one. Yet, at a time when you need to mourn their death, and deal with other practical matters, credit card debt often rears its ugly head. The key to getting through it is to know the facts and communicate with the credit card companies accordingly.\nDo Family Members Inherit Credit Card Debt After a Loved One's Death?\n---------------------------------------------------------------------\nIt depends, but generally speaking, no. Provided you are not a co-signer on the account, family members cannot be held responsible for credit card debt that a loved one leaves behind. However, in some community property states, debt passes on to spouses. So the rules may vary if you live in Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin.\nAlso, the indirect impact of leftover credit card debt can be costly. Provided there is an estate with assets, credit card companies will be paid before any inheritances are paid to named beneficiaries of the estate. In some cases, this means there is little if anything left after all debts are paid by the estate.\n### What if There Are Not Enough Assets in the Estate to Pay Off Outstanding Credit Card Debt?\nIn that case, credit card companies are out of luck. This is a common scenario, as credit card debt is unsecured debt, forcing it to play second fiddle to secured debts that must get paid off first, such as mortgages.\n### Am I Responsible For Debt on a Deceased's Credit Card For Which I Am An Authorized User?\nNo. After the death of the cardholder, authorized users on credit cards are not legally responsible for the debt. That said, you could be in trouble if you continue to use an authorized card after the cardholder's death. Or, if you use the authorized card knowing the debt will not be paid off.\n### Am I Responsible For Debt on a Deceased's Credit Card For Which I Co-Signed As a Joint Account Holder?\nYes. After the death of the joint cardholder, legal responsibility for the debt passes on to you, the co-signer on the account. This is yet one more very good reason to minimize your number of joint accounts. While acting as a co-signer for family or friends may help them qualify for credit they may otherwise not receive, be mindful of how their spending and subsequent payment habits could end up hurting your credit in the long run. A joint cardholder could maintain good standing on the account simply by making the minimum payment each month. But they could simultaneously maintain a balance of thousands of dollars for which you will be fully responsible for at their death.\nWho's Responsible For Debt on a Credit Card Left Behind by an Ex-Spouse?\n------------------------------------------------------------------------\nIt depends. If you were a joint account holder on a credit card, and the divorce settlement included their agreement to pay off the balance on that credit card, let's hope they followed through. Otherwise, if that spouse dies before the credit card is paid off, then you are legally responsible for the debt.\n### After the Cardholder's Death, Can Credit Card Companies go After IRA's, 401(k)'s, Brokerage Accounts or Insurance?\nNo, as these are generally not considered part of the cardholder's estate. Instead, they should go to whomever the deceased named as the beneficiary. That said, it is possible the credit card companies could go after said beneficiary. That should not be the case for 401(k)'s and insurance policies, but beneficiaries of IRA's and brokerage accounts could be affect depending on the rules of the state.\n### Should I Contact the Credit Card Companies After a Loved One's Death?\nYes. You may be able to avoid future hassle and confusion by notifying credit card companies of your loved one's death. Granted, there are a number of difficult emotions to deal with and practical matters to take care of, so this may not be the priority at the top of the list. But it should be something that is addressed sooner than later, before payments are missed and fees accumulated on debts that may come out of the estate.\n### Can Credit Card Companies Continue to Allow Fees and Finance Charges to Accumulate on Credit Card Accounts While the Estate is Being Settled?\nNo. That is one more reason why it is important to notify credit card companies of your loved one's death.\nHow to Handle Collection Calls from Credit Card Debt Collectors After a Loved One's Death\n-----------------------------------------------------------------------------------------\nIf and when you start receiving calls regarding collection of the deceased's credit card debt, first ask for proof of the debt. Once you have received this validation, determine whether the creditor is still within its statute of limitations to collect on the debt (which varies by state). Finally, determine whether you, or anyone else, is legally responsible for the debt. If you are not responsible for the debt, but the creditor continues to hound you, you may file a complaint with your state Attorney General's office and the Federal Trade Commission. You may also consider consulting an attorney. END

TITLE: Manage Federal Student Loan Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nStudent loan debt is now greater than credit card debt for the first time in U.S. history. But did you know, student loans may not be charged off in bankruptcy. So, one way or another, you must find a way to pay them off, or otherwise live with the big hit your credit will take as a result of non-payment. Fortunately, if yours are federal student loans, you're in luck, as they offer more protections and options than their private student loan counterparts.\nWhat is a Federal Student Loan Deferment?\n-----------------------------------------\nDeferring a federal student loan means that, under certain circumstances, you are approved to postpone payment of the debt for a specified amount of time. Your federal student loan may be deferred if:\n* You are in graduate school or the military.\n* You are unemployed.\nWhat is a Federal Student Loan Forbearance?\n-------------------------------------------\nA federal student loan forbearance is similar to a deferment, in that you are approved to postpone payment of the debt, under certain circumstances, for a specified amount of time. However, unlike a deferment, a forbearance will continue accruing interest during the forbearance period, for which you will ultimately be held responsible. A forbearance should only be sought if and when you do not qualify for a deferment. Forbearances are common for those who are sick and unable to work, during which time the debt may be postposed for up to 12 months.\nWhat is the Pay-As-You-Earn Plan?\n---------------------------------\nIf you are unable to make your monthly federal student loan payments, you may qualify for the pay-as-you-earn plan. This may lower your monthly payment, as it is based on a presumably more affordable percentage of your income. If the loan is not paid off within 20 to 25 years, then pay-as-you-earn forgives the remainder of the debt.\nCan I Extend the Life of My Federal Student Loan?\n-------------------------------------------------\nIf you are having trouble making your monthly student loan payment, and have already exhausted your deferment options, you may consider changing your payment schedule. While you are probably currently scheduled to pay your loan within 10 years time, you may be able to extend repayment another 15 years. Just keep in mind that, as with loan consolidation, extending the life of your loan to 25 years means compounding interest rates. So while your monthly payment may decrease, what you're paying in the long run may increase considerably.\nCan I Consolidate My Federal Student Loans?\n-------------------------------------------\nYes, you may consolidate your federal student loans. However, while this may have the benefit of lowering your monthly payment, in the long run you'll end up paying more, as consolidating your debt into one loan, while simultaneously lowering your monthly payment, means extending the life of your debt and, in turn, compounding interest fees. So, if possible, you are better served finding a way to pay your student loans as they stand now. However, the last thing you want is for your student loans to go unpaid, as it hurts your credit and, should it come to this, you cannot include student loans in a bankruptcy. In other words, while you will pay more in the long run by extending the life of your loan, it may be a price you are willing to pay in exchange for protecting your credit.\nCan I Pay Off My Federal Student Loan Early, Without Penalty?\n-------------------------------------------------------------\nYes, unlike some other types of loans, you can pay off your federal student loan debt early, without penalty.\nUnder What Circumstances May a Federal Student Loan be Forgiven?\n----------------------------------------------------------------\nOnce you have made 120 payments, forgiveness of federal student loans may be possible if you are in any one of the following fields: law enforcement, early-childhood education, public health, emergency management, the military, school-based services and other public service jobs.\nAre Federal Student Loan Payments Tax Deductible?\n-------------------------------------------------\nYes, you are not required to pay taxes on income that goes toward paying down your federal student loan.\nWhere Can I Get More Information About Managing My Federal Student Loan Debt?\n-----------------------------------------------------------------------------\nYou should have been provided with loan counseling before and after receiving your federal student loan. For additional information and\/or questions about options specific to you, contact your loan servicer. You may also find helpful the National Student Loan Data System at www.nslds.ed.gov. END

TITLE: Debt Collection After You Have Moved Out of United States CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nWe do get this question from time to time, and it was the subject of a recent discussion forum thread: \"What happens to debts when I leave the country?\"\nThe first issue that should be addressed is whether or not a contract for debt is enforceable outside of the the United States. The simple answer is \"No.\" Period.\nReturning to the U.S. With Outstanding Debts\n--------------------------------------------\nWe know that when you're out of the country, you leave your debts behind. But what if you decide to return to the U.S. after a number of years? There could be several situations.\n* You have unpaid credit card, auto or mortgage debt and cease payments before or after leaving the country.\n* You have unpaid debt in collection.\n* You are sued for an unpaid debt after leaving the country.\n* You get a judgment against you while out of the country.\n* You already have a judgment against you prior to leaving the country.\nCan a Creditor Sue You When You're Out of the Country?\n------------------------------------------------------\nThere are all kinds of problems with a company suing you while you are out of the country. In some cases, depending on the loan agreement and local laws, the process server might have to serve you in the county where the contract was signed. In some cases, a the loan agreement might specify in which state legal arguments and court cases must be settled.\n**One issue trumps all others**. Technically, it's illegal for a creditor to sue you in a county or state in which you do not currently reside. Why is this illegal? In most cases, a state court rules state the creditor must sue in the county and\/state of the Defendant's current residence.\nWhat if a Creditor Sues Me Even Though It's Illegal?\n----------------------------------------------------\nEven though it may be illegal for a creditor to sue you while you're out of the country, it doesn't mean it won't happen. If a lawsuit goes uncontested, even if it shouldn't have been filed in the first place, the creditor can win and get a judgment entered against you.\nIf a creditor sues you where you no longer live and wins the case, you can appeal the judgment based on this fact. The gotcha here: most court rules only allow you to appeal or vacate a judgment within a certain time after the judgment is granted.\nIf you know you have unpaid debts and\/or defaulted debts, and you plan to return to the U.S., it would be worth your while to keep tabs on what is happening with those debts. You don't want to come home to the hassle of dealing with a judgment, even if it was technically granted illegally. END

TITLE: Credit Card Debt Lawsuits - Robo-Signing Documents CONTENT: Handle a Credit Card Debt Lawsuit\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nJust when you thought big banks had learned their lesson during the mortgage crisis, now comes the news some lenders are now using the \"robo-signing technique\" to collect on credit card debts. During the big push to foreclose on houses and displace millions of Americans, some banks were falsifying and mass-producing forged, unverified documents to use in their foreclosure lawsuits. In the autumn of 2010, major lenders such as JP Morgan and Bank of America were forced to suspend foreclosure proceedings. Eventually, a $26 billion settlement was reached between these banks and the aggrieved borrowers due to the fact they were \"robo-signing\" documents and were not properly documenting their foreclosure cases.\nNow, credit card companies like American Express, Citigroup, and Discover are filing lawsuits and going to court trying to collect money they say is owed to them by their borrowers. But, it has been discovered their legal processes are just as faulty and fraudulent as their predecessors, Bank of America and JP Morgan. Will these banks ever learn?\nAccording to a recent article in the _New York Times_, the same problem that plagued the foreclosure process is now emerging in the debt collection practices of credit card companies. Lenders are churning out lawsuits in record numbers without any regard to accuracy and validity. A judge in Brooklyn, who presides over as many as 100 such cases a day, says 90 percent of these credit card lawsuits are flawed. He claims, \"the lenders are not proving to the court who owes the debt nor are they able to document how much is really owed.\"\nThis article goes on to state that interviews with dozens of state judges, regulators, and lawyers indicate this incomplete and flawed documentation is becoming more and more common in credit card lawsuits. In total, borrowers are behind on $18.7 billion of credit card debt and credit card companies are scrambling to come up with ways to start collecting on this debt.\nRobo-Signing and Robo-Testimony\n-------------------------------\nRobo-signing is one of those terms that emerged out of nowhere and instantly became the buzz of the Internet. As a result of a federal investigation, it was confirmed that employees of Bank of America, Wells Fargo, JP Morgan, and two other banks were signing foreclosure documents without verifying the information was accurate or complete. Stacks and stacks of documents were signed or notarized without anyone reading the documents beforehand to make sure what they were signing was indeed true. Hence the term \"robo-signing\" was born.\nThis same disregard to verifying credit card debt has surfaced with a new cast of characters. Not only are employees of major lenders just signing whatever documents are set before them, but they are testifying in court on hundreds of cases without knowing anything about each case. These employees have been found to be giving robo-testimony, or the same generic testimony given in numerous cases. This was actually documented where a judge saw the same witness in several cases, saying the same thing.\nThere have been cases where lenders are going after customers who's bills have already been paid or the lenders are just tacking on bogus fee and interest charges. All of this is just a matter of employees being instructed not to verify anything and to just apply fees and charges across the board without looking at each account individually.\nHow to Win Against the Credit Card Companies\n--------------------------------------------\nFirst and foremost — don't ignore the lawsuit. Credit card companies are betting you will not show up to court and they will be awarded a default judgment. It is estimated that about 95 percent of these lawsuits are resolved by default judgment in favor of the credit card company because the borrower did not show up for the hearing. Show up to court — you never know how weak your lender's case against you might be.\nIf you feel a bit overwhelmed with the lawsuit process, hire an attorney. There are plenty of consumer advocate attorneys out there who love to help out the little guy. More and more attorneys know these cases are a slam dunk because the lenders can not prove their case nor are they willing to make any effort to provide any supporting documentation. When push comes to shove, if you make the lender work to prove you owe the debt chances are they will not be able to and the lawsuit will be dismissed.\nLastly, amid the surge of lawsuits being filed by the credit card companies, there is a rise in the investigations being done by the Office of the Comptroller of the Currency against larger banks such as JP Morgan. With more and more employees becoming whistle-blowers, more attention is being drawn to these lenders to make sure what they are presenting to the court is accurate and valid information. Make the lender prove their case and make sure they are able to prove the debt is yours and the amount owed. If they can't — YOU WIN! END

TITLE: Tips for College Grads to Minimize Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nAfter spending four challenging years earning a college degree intended to maximize your financial future, there is nothing more discouraging than starting out your brand new life with a big pile of student loan debt. While much of this may be unavoidable, depending on the size of your student loans, there are certainly steps you can take to effectively manage and minimize your debt going forward.\nMinimize Debt During School\n---------------------------\nCollege graduates are leaving school with a collective $1 trillion in student loan debt, so it is imperative students exhaust every possibility for minimizing debt. Explore all your options for scholarships and financial aid, even if you don't think you'll qualify, as you may be surprised. Work a part-time job during the school year; full-time in the summers. Avoid credit cards (at least until your senior year). And if you have any unused student loan money, avoid the temptation to spend it on extras and return it to the lender instead.\nApply For a Credit Card\n-----------------------\nCredit cards in your name can help establish the kind of money-saving credit history you will need after graduation, from renting an apartment, to turning on utilities, to getting insurance. However, it can be tempting for college students who are pinching pennies to max out cards, racking up debt that haunts them way beyond graduation. Avoid this trap by waiting until your senior year to get a credit card in your name, as it only takes six months to establish credit. If you have trouble qualifying for an unsecured credit card, get a secured credit card, which can help build credit equally well. Once you've proven to be a responsible borrower, you should have no trouble upgrading to an unsecured version with the same lender.\nUse Your Credit Card Wisely\n---------------------------\nThe only way to prove yourself responsible with credit is to use it. So while you don't want to max out a credit card, neither do you want to let it gather dust in your wallet. Get in the habit of using your credit card, but only on essentials so as to avoid buying things you don't need. Paying your regular monthly bills, like the phone bill or the electric bill, with a credit card are a good way to go.\nPay Off Credit Card Balances Every Month\n----------------------------------------\nTry to avoid paying interest fees by making it a habit of returning your credit card balance to zero every month. This means, of course, only charging as much to the card as you can turn around and cover with cash.\nObtain Student Loan Payment Details\n-----------------------------------\nBefore you graduate, find out the precise date you are expected to start making your monthly student loan payments, as well as the amount. If yours is a federal loan, you will automatically be entered into a 10-year payment plan. While you can extend the length of this loan term, do your best to manage it over 10 years time. Though an extension will lower your monthly payments, it will also increase the interest, increasing how much will actually pay in the long run.\nCreate a Monthly Budget\n-----------------------\nSit down and do the math on your ratio of monthly income to expenses. Factoring in your student loan, rent, utilities, food, and other necessary expenses, subtract that from your paycheck, and you'll know how much you have left over for savings and extras.\nPay Your Bills Early\n--------------------\nLiving expenses are large enough without tacking onto them fees for making late payments, on anything from rent and car payments, to utilities and credit cards. So instead of waiting until the last minute and potentially missing a payment by as little as a day's time, get in the habit of paying your bills early -- if you can swing it, as early as the day the bill arrives.\nLive on the Cheap After Graduation\n----------------------------------\nIf you're already in the habit of pinching pennies in college, it's not too much of a stretch to continue doing the same once you graduate. Certainly, you want to acquire nice things, but that can wait a year or two while you get into a new groove of living, experiencing firsthand exactly what things cost, what you can afford, and what's really important to you in terms of future financial investments.\nStart to Save Money\n-------------------\nThe emphasis on this point is not so much about quantity as it is about quality. Starting out, the benefit of saving is more about growing the habit than any big stack of cash. As long as it's a behavior built into your financial life, the size of your savings will naturally grow as does your income.\nMonitor Your Credit Reports\n---------------------------\nThe better your credit score, the better terms you'll be able to secure from lenders. The last thing you want to do is assume that just because you are making on-time payments to your creditors, your credit reports are in tip-top shape. The credit reporting bureaus do make mistakes, and it's your responsibility to catch them. And while you may not be thinking about buying a home or a car anytime soon, it's still important to manage the credit history now that will affect you for many years to come. You are entitled to one free annual report from each of the credit agencies. Request your copies via AnnualCreditReport.com. END

TITLE: How to Deal with Medical Debt and Pay Medical Bills CONTENT: How to Deal with Medical Debt Caused by Overwhelming Hospital Bills\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nHospital bills are the number one reason for filing for Chapter 7 bankruptcy in the United States. Even if you are not forced to the brink of bankruptcy, you don't have to end up plowed under by excessive medical debt. There are many options and resources available to get help with your hospital bills. Some of these methods will work even if the hospital bill is already in collections.\n**Note:** Keep in mind that medical bills wind up in collections very quickly, and collection agencies handling these accounts usually have good records. Debt validation does not usually work with a medical collections firm. Do everything you can to keep accounts out of collections.\nContact Hospital Financial Assistance\n-------------------------------------\nMost hospitals have a financial assistance expert on staff. Sometimes this expert can set you up with a payment plan right at discharge, and so long as you follow the plan the hospital will basically leave you alone. The expert can also offer help with insurance. He can, for example, often set you up with a county or state insurance plan that you've never even heard of. He can sometimes get those plans to retroactively pay the bill, too.\nThis person is also the gatekeeper for the hospital charity application. If a charity application gets approved then a portion of your bills, maybe even all of your bills, will wind up forgiven.\nVictims of Crime Programs\n-------------------------\nThese programs are only available to those who get injured because of someone else who is committing a crime. Note that you can't have been committing a crime yourself at the time! These programs will pay your hospital bills, but you have to file the claim correctly and in the proper fashion. Ask the police or the hospital for help with contacting the Victim of Crimes department. If your bill is in collections already the agent may be able to get this information to you as well, provided the statute of limitations on filing has not already expired.\nWorkman's Compensation\n----------------------\nIf your trip to the hospital is the result of a workman's comp case, you should be prepared for events to slow to a crawl. It takes a lot of time to resolve these cases and a lot of conversations, so make sure you keep all of your case information handy at all times. Many of these cases do wind up at the collection agency before they end up getting paid. Since the collection agency knows the workman's comp insurance provider has bigger pockets than you do, they will typically want to push it with the insurance provider instead. You just need to make sure the bill in question relates, directly, to the workman's comp injury. Be sure you give the agency all of the information they ask for.\nAutomobile Accidents\n--------------------\nThere's a hierarchy of responsibility when it comes to automobile accidents, as multiple insurance companies and individuals are typically involved. A lot of \"who has to pay what\" depends on the circumstances of the accident. Make sure the hospital or collection agency has all of the information they need to resolve the problem. That information includes the contact information and car insurance information for everybody involved in the accident. They will also need your medical insurance information. If any attorneys are involved, the hospital or collection agency will need that information too.\nCharitable Programs\n-------------------\nIf you can't turn anywhere else, there are several charities that help out with medical bills. Try the Access Project, the CancerCare Co-Payment Assistance Foundation, Children's Health Fund, Catholic Charities and Free Medical Camps, just to name a few. There are also charities that target prescriptions, diapers, and other needful things.\nDouble Check Your Insurance Company\n-----------------------------------\nSometimes, insurance refuses to pay the bills for reasons that are easily fixed. The most common fixable problem is a co-ordination of benefits, where the insurance company believes you might have a second health insurance company. If you do, they need that information so the two insurance companies can decide who has to pay what. Usually a simple fax that outlines your insurance situation will solve the problem. Sometimes it can even be done through an automated system phone call. Some insurance companies ask for co-ordination of benefits information every year as a matter of policy. Make sure you read everything that comes from your medical insurance company to avoid this problem.\nGoing bankrupt over hospital bills should always be a last resort, after every other option and resource has been exhausted. If you're sick right now, know that the financial troubles can eventually be solved one way or another. Concentrate on healing for now, and worry about the price tag later. END

TITLE: How to Negotiate and Settle Medical Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nWe are hearing more about people who are getting into debt because of exorbitant medical bills and no way to pay them. The **_New York Times_** recently wrote an article about a laid-off New Jersey supermarket executive who received a $171,569 medical bill for a six-day hospital stay due to a heart attack. Since he was unemployed, he did not have health insurance and one has to wonder, what in the world is this guy going to do? Better yet, what can any of us do if we get a medical bill such as this?\nNegotiating hospital and doctor fees is not an easy task, but it can be done. The most important thing to keep in mind is to not bury your head in the sand and think these bills are going to magically go away on their own. You must apply for help or try to negotiate these bills within 90 days of incurring the bills. Any longer, and you run the risk of these bills going to a collection agency. If that does happen, fear not — we will discuss tips on negotiating medical bills with collection agencies later in this article.\nSteps to Negotiate and Settle Your Medical Bills\n------------------------------------------------\n### **Step 1: Organize and Review Your Medical Bills**\nYou will be surprised how many bills you will receive from a stay in the hospital. From the ambulance ride to the hospital, to the lab tests, to the prescription drugs, you will receive a multitude of bills in the mail. Make sure to keep track of them and putting them all into a spreadsheet would be the best idea.\nNext, you will want to review each and every bill to make sure there are no errors such as overcharges or double-charges. Keep a look out for these common billing mistakes:\n* If you are discharged in the morning, protest if you're billed for a full daily-room rate for the date you left the hospital.\n* If you brought your medications with you, make sure you weren't charged for them by the hospital.\n* Dispute any additional fees on your bill for routine supplies, like gowns, gloves or sheets. These items should be factored into the hospital daily-room charge.\n### **Step 2: Negotiate Bills With the Original Creditors Once You Know How Much You Can Afford to Pay**\nNow that you have all of your bills, you need to see how much will be paid by your insurance carrier (if you have one) and how much will be your responsibility. If you have medical insurance, you should see an amount that was paid by your carrier deducted from the total amount due. If you do not see this, immediately get on the phone with your insurance company to make sure you get this corrected.\nIf you do not have any medical insurance, the balance will have to be paid by you. Either way, you now will have a total amount that you are responsible for. Next, how much can you afford to pay? If you only have so much money saved or money left over after your monthly bills are paid, you need to know this amount.\nCall each provider and explain to them you only have so much money to pay on this bill and what can they do to try to discount this bill for you. More often than not, a provider would rather get some money than no money so they will be more inclined to work out something with you. If not, there are a lot of medical bill negotiators that call handle this dirty deed for you.\n### **Step 3: Negotiate Bills With Debt Collectors**\nSometimes getting everything together takes longer than you thought, and now some or all of your medical bills have been sent or sold to a collection agency. There are a few things to consider first and foremost before you start to deal with a collection agency:\n1. Determine if the bill is past the Statute of Limitations. The Statute of Limitations varies from three to six years so you will have to check your state laws to verify the exact time limit. And, the SOL starts when an account becomes delinquent or when you last made a payment - not the date of service.\n2. A collection agency may try to \"re-age\" the debt by having you make a small payment on it. If you make a payment on the debt, it will restart the SOL clock so be very careful on what you say and agree to with a collection agency. Make sure you come to a full and final agreement before you make any payments. Refer to our article on dealing with collection agencies for more info.\n3. If you want to settle your debt with a collection agency, offer them 25 percent of the original amount. They can afford to settle these debts for far less than the original amount because they buy these debts from the hospitals and doctors for pennies on the dollar. What they get from you is pure profit so make sure to stick to your guns when negotiating an amount. And, make sure to get everything in writing!\n4. After you settle with a collection agency, a \"debt settled for less than the full amount\" will appear on your credit report. Fear not - it will fall off after seven years. It might not be a perfect solution, but it stops the phone calls and letters and the worry of this bill hanging over your head.\n5. You will get a Form 1099-C from the collection agency. If you were insolvent prior to settlement of the debt, you can file a Form 982 to claim an exclusion to paying the tax on the canceled debt.\nAs we stated earlier, the worse thing you can do is to ignore your medical bills as they will not go away. You don't have to let them lead you down the path to bankruptcy - you can negotiate your bills with the original creditors or with collection agencies. All you need is some guidance and you can settle your medical debts for far less than you thought possible. Make sure to take advantage of any financial assistance and the help of numerous medical bill advocates who can help you get your medical bills under control. END

TITLE: How to Negotiate and Settle Medical Debt CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Negotiate and Settle Medical Debt CONTENT: | | | | \n: . END

TITLE: How Thieves Can Steal Your Identity CONTENT: 11 Ways a Thief Can Steal Your Identity\n---------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThough countless things make up the whole of your identity, thieves may only need a single piece of information to steal it away from you. It could be a social security number or a credit card number, but it could also be something far less-guarded that you share openly, and often, without a second thought. Like your birthdate. Your address. Your phone number.\nWhat's worse is that identity thieves have so _many_ means of collecting your personal data. They know them all. Do you?\n#1 - Purse and Wallet Theft\n---------------------------\nIt's a little old-school, but when it works, it works _wonders_. A thief who manages to get their hands on your purse or wallet gains access to your driver's license, credit cards, debit cards, checks, and possibly even your passport. With this wealth of resources, they can do just about anything.\n**Tips:**\n1. Never leave your purse or wallet in the car, even if you're just running into the store for a minute. In fact, never leave your purse or wallet unattended anywhere but in your own home. The only exception is in the homes of family and close friends (provided it's not a social gathering of people you do not know).\n2. Only carry in your purse or wallet things you absolutely need. Why carry all your credit cards when you only need one? Why carry your checkbook when you only write checks to pay bills once or twice a month? And though it can probably go without saying, here it is just in case, never carry your social security card or birth certificate.\n#2 - Mail Theft\n---------------\nThink you get exited about checking your mail? Imagine the excitement thieves feel at the prospect of discovering in your mailbox boxes of checks or pre-approved credit card offers. Then there's all the information they can piece together from phone bills, bank statements, and tax documents.\n**Tips:**\n1. Go paperless. As much as possible, request from your utility companies, bank, credit card issuers, and the like that your bills and statements be sent to you via email.\n2. Check your mail as soon as possible, every single day, to limit potential accessibility.\n3. Take outgoing mail directly to the post office. Even a secured drop box in your apartment complex or the like can be broken into. And never, ever, no matter what, put outgoing mail into an unlocked mailbox. That red flag you put up to catch the postal person's attention does the same for identity thieves on the prowl.\n#3 - Dumpster Diving\n--------------------\nWhat you're good and done with may be just the beginning for identity thieves from bank statements, to credit card offers, to tax documents.\n**Tips:**\n1. Shred everything. Well, everything that has your name and other personally identifiable information on it, be it a mailing address, phone number, account number, social security number, etc.\n2. If in doubt, shred it anyway.\n#4 - Copying Card Information at Checkout\n-----------------------------------------\nEvery time you hand your credit or debit card over to a stranger, you're handing them a key to your life. Granted, these days we're the ones doing the swiping much of the time, meaning our cards never leave our hands, but that's not always the case, particularly at restaurants where servers disappear with our cards for stretches of time plenty long for them to copy down our card info.\n**Tips:**\n1. Pay with cash at restaurants. This may take some getting used to, but as inconvenient as it may be to stop for cash before dinner, it pales in comparison to the worst-case alternative. If cash isn't an option (it's always an option), choose credit over debit. You can only be held responsible for $50 of fraudulent credit card charges, whereas for debit cards it's $500.\n2. For those times when you hand your card over to cashiers, be mindful of them turning their back to you and taking longer with the transaction than seems normal. Identity thieves have been known to use this opportunity to take a picture of cards with their smartphones.\n3. After getting your card back from a payment transaction, always double-check to be sure it's yours. Identity thieves have been known to swap it out with a fake one, and you're none-the-wiser until the next time you try using it.\n#5 - Cell Phone Calls\n---------------------\nWho's not guilty of eavesdropping on someone else's cell phone conversation? Often, it's hard not to, especially when they're talking in a cafe or while standing in line, well, just about anywhere. For most of us it's just an annoyance or a guilty pleasure. For identity thieves, it's an opportunity.\n**Tips:**\n* Never conduct personal business over a cell phone in public. This includes calls to your bank, utility companies, or any person or organization with whom you may be asked to share personal information. You know what it's like trying to access an account over the phone -- it's one query after another, from your address and phone number, to PINs and security questions.\n#6 - Skimming\n-------------\nAt best, outdoor ATMs and payment kiosks at gas stations and parking lots are a convenience. At worst, they are a magnet for identity thieves who use \"skimmers\" — devices surreptitiously attached to the ATM or payment kiosk so as to steal information from your credit or debit card.\n**Tips:**\n1. Do not use outdoor ATMs. Either use an ATM inside your bank or make your transaction with a teller.\n2. Do not use your credit or debit card in an outdoor payment kiosk. Use cash instead. Of course, this isn't an option when leaving a parking structure (if you forgot to pay before getting into your car). In that case, your only payment option is a card. In this case, user credit over debit, as you can only be held responsible for $50 of fraudulent charges on a credit card, whereas it is $500 for debit.\n#7 - RFID Readers\n-----------------\nThanks to the RFID smart chips now available in credit and debit cards (radio frequency identification chips) it is now possible to make payments via a contactless card reader that makes swiping unnecessary. Unfortunately, this new feature is especially attractive to identity thieves. Anyone can purchase an RFID reader, place it near your pocket or purse, and steal your credit card number, expiration date, and other info without a thief ever gaining physical access to your wallet.\n**Tips:**\n1. If you don't know already, find out if your credit or debit cards are embedded with smart chips. Simply call the number on the back of each card and ask.\n2. If one or more of your cards are embedded with smart chips, invest in RFID-protective card sleeves or wallets which will protect you from identity thieves using RFID readers.\n#8 - Phishing\n-------------\nWe're all pretty practiced at weeding out spammy, suspicious-looking email. But that's no deterrent for identity thieves who are still finding ways for their email \"phishing\" scams to trick us into believing theirs are the real deal (i.e., emails from people and organizations we can trust and share information with).\n**Tips:**\n1. Do not open (or click on links inside) spammy, suspicious-looking email, even if it says it's from someone you know or normally do business with.\n2. Do not respond to email with personal information. Legitimate businesses will never ask you to verify any personally identifiable information in this manner.\n#9 - Spyware\n------------\nIt seems we're always being encouraged to download one new program after another. Unfortunately, some programs are not all that they seem, as you may end up downloading \"spyware\" that identity thieves use to track your online activity and, in turn, steal your personal information.\n**Tips:**\n1. Be careful what you download.\n2. Invest in trusted anti-spyware software, like Norton or McAfee.\n#10 - Social Media Sites\n------------------------\nThe danger of over-sharing via social media is not limited to random thoughts, overzealous opinions, or sorted details of your life. Identity thieves are counting on you to over-share the seemingly boring details of your life too.\n**Tip:**\n* Never post to a profile or update your full birthdate, address, or phone number.\n#11 - Data Breaches\n-------------------\nRetailers are at the mercy of identity thieves who manage to breach their point-of-sale security systems, taking your personal information with them.\n**Tips:**\n1. Pay with cash whenever possible (it is always possible).\n2. When you do pay with a card, choose credit over debit. Again, you can only be held responsible for up to $50 of a fraudulent credit card purchase, whereas it's up to $500 for debit.\nOther Ways to Protect Yourself\n------------------------------\n* Don't sign blank credit card receipts.\n* Change your online passwords frequently. Make them as strong as possible, using at least one capital letter, as well as non-alphanumeric characters. Avoid passwords that include your name (or the names of loved ones), birth dates, etc. And the more non-sensical the better, meaning you're best-served avoiding real words that can be found in the dictionary.\n* Only make online purchases via credit or debit card on websites that are clearly secure (i.e. displaying the lock icon or \"https\" in the domain name.\n* When making purchases with your card over the phone, only do so if you made the call.\n* Remove your name from mailing lists.\n* Check your checking and credit card activity daily via your online accounts.\n* Check your credit reports at least once a year to be sure there are new accounts that you didn't open. Go to AnnualCreditReport.com to request your free copies from the three major credit reporting agencies, Experian, Equifax, and TransUnion.\nFeeling Overwhelmed?\n--------------------\nBreak it down to what's at the heart of every tip on this list: common sense. In every aspect of your life, make choices that limit how you treat, and with whom you share, personally identifiable information. END

TITLE: How Thieves Can Steal Your Identity CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Detect Phishing and Internet Fraud CONTENT: Beware of Phishing Cyber Scams and ID Theft\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nPhishing is the act of attempting to acquire personal information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an email communication. Phishing emails may contain links to websites, which are infected with malware so when the unsuspecting person clicks on the link, their financial information and passwords, that may have been saved on their computer, are stolen.\nThe sender may ask you to \"confirm\" your personal information for some made-up reason; your account has been closed, an order for something has been placed in your name, your information has been lost due to a computer error, etc. A phishing email will contain a concocted story designed to lure you into taking an action such as clicking a link or button in the email or perhaps calling a phone number and providing or confirming personal information.\nHistory of Phishing\n-------------------\nThe phishing technique was first described back in 1987 and the term \"phishing\" was established in 1995 as a play on the word fishing. A cyber-thief uses \"bait\" to \"lure\" his victim into clicking on a malicious link to which their private information was stolen. Hence, the beginnings of Phishing.\nHow to Spot a Phishing Email\n----------------------------\nThere are many telltale signs, but here are some of the most common:\n* **Generic Email Greeting.**  A typical phishing email may address you in a generic fashion, such as \"Dear User:\"\n* **Sender's Email Address.**  The address that the email is \"From\" may include an official looking one (possibly copied from the genuine business or entity). Be aware that email addresses can be easily altered and are not necessarily indicative of the validity of the sender.\n* **It Requests a Quick Response.**  Most phishing emails are written with a false sense of urgency attempting to convince you that your account will be \"in jeopardy\" if you don't perform a particular action immediately.\n* **A False Link or Website.**  Many of these phishing emails contain a link that looks valid to connect you to the \"Subject\" site, but directs you to a fraudulent site that may or may not have a URL different from the link provided. Even though the email looks like the \"real deal\", complete with authentic logos and working web links, it may well be just a clever disguise. See below for help in identifying a false website link.\n* **Attachments.**  Only open attachments if you are expecting them and know what they contain. Even if the message looks like it came from someone you know, they could be from phishers and contain programs that may steal your personal information.\nHow to Avoid Being a Victim of Phishing\n---------------------------------------\nRemember, when it comes to phishing, you are in control. To protect your financial and identity information, simply ignore all email requests for information. Other tips include:\n* **Keep Your Security Software Current.**  Protect your computer with spam filters, anti-virus and anti-spyware software, and a firewall and keep them up to date. A spam filter can reduce the number of phishing emails you get. To learn more about Internet security measures, go to OnGuard Online or StaySafeOnline.\n* **Password Smarts.**  Be smart about choosing your passwords; change them often, and choose uncommon passwords that include numbers, letters and symbols.\n* **Go to Actual Websites; don't use links.**  If you think the email message is legitimate, do not click on the link provided in the email to get to the website. Instead, go to the actual Web site by entering the URL for the home page, and look for the supposed legitimate Web page within the site to confirm.\n* **Report Phishing Emails.**  Many of the companies that phishers commonly use to attempt to obtain your information will investigate emails forwarded to them from targeted victims. EBay and PayPal are good examples, and this will benefit all intended victims and helps stop identity theft. You can also report the problem to law enforcement agencies through the National Fraud Information Center\/Internet Fraud Watch at 1-800-876-7060.\n* **Security Freeze Placed on Account.**  Look into having a security freeze placed on your credit files to help prevent credit information from being disclosed to open a new account without your explicit consent.\n* **Never Enter Personal Information in a Pop-Up Screen.**  Legitimate companies, agencies and organizations don't ask for personal information via pop-up screens. Install pop-up blocking software to help prevent this type of phishing attack.\n* **Phishing Also Happens by Phone.**  Be suspicious if you get a call from someone pretending to be from a company or government agency, and asking for personal information. Particularly if you are contacted out of the blue; it's a sign something is \"phishy\".\n* **Ask Yourself if it Makes Sense.**  If this company already has your personal information, they would not request what they already have on file.\nTips on Identifying a False Website Link\n----------------------------------------\n**Hold your mouse over the link** in your email, but **DO NOT CLICK ON IT**. You will see where the link goes in the left bottom corner of the browser or your email software window.\nFor example, if the email were regarding a PayPal matter (though PayPal RARELY sends out email with a link back to their website), a SAFE link to PayPal would be:\n_something.paypal.com_\nWhy is this safe? Because the \"paypal\" part of the link is located immediately next to the \".com\" part of the link and \"paypal.com\" are the last letters in the link.\nAn unsafe link is something like:\n_something.paypal.com.add-me.net_\nWhy is this unsafe? Even though the \"paypal\" part of the link is located immediately next to the \".com\" part of the link, the \"paypal.com\" are NOT the last letters in the link. This means that the link is going to the website of \"add-me.net\" where most likely malicious code resides, or there is a form which mimics a form on PayPal requesting your information. END

TITLE: How to Detect Phishing and Internet Fraud CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Detect Phishing and Internet Fraud CONTENT: | | | | \n: . END

TITLE: Recent Statistics on Identity Theft and Fraud CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 4, 2017_\nThe **Identity Fraud Report** released by Javelin Strategy & Research in February 2017, showed identity fraud reached new highs in 2016. Overall fraud incidents rose 16 percent to affect 6.15 percent of U.S. consumers, up from 5.30 percent in 2015 —  the highest on record. The study also found that there were two million more victims than 2015 and the amount the fraud thieves took was one billion more raising losses to $16 billion.\nIdentity Theft Trends\n---------------------\nThe 2017 Identity Theft Fraud Study found these significant identity theft trends:\n* **Record high incidence** — In 2016, 6.15 percent of consumers became victims of identity fraud, an increase by more than 2 million victims from the previous year. \n* **Card-not-present (CNP) fraud rises significantly** — The growth of e-commerce fraud is a result of increased online purchases which dramatically increased the prevalence of CNP fraud by 40 percent. Fraud at the point-of-sale (POS) remained essentially unchanged from 2014 and 2015 levels.\n* **Account takeover bounces back** — After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 — 6 million more than in 2015.\n* **New-account fraud continues** — As EMV cards and terminals continue to permeate the point of sale environment, fraudsters shift to fraudulently opening accounts that allow them. At the same time, fraudsters have become better at evading detection, with new-account fraud (NAF) victims being notably more likely to discover fraud through review of their credit report (15 percent) or when they were contacted by a debt collector (13 percent).\n### Top Ten States for Identity Theft Complaints per 100,000 Population in 2016 \n**Missouri**\n364.3\n**Connecticut**\n225.0\n**Florida**\n217.4\n**Maryland**\n183.2\n**Illinois**\n158.7\n**Michigan**\n158.1\n**Georgia**\n149.1\n**Texas**\n144.3\n**New Hampshire**\n142.0\n**California**\n141.3\n* * *\nSource: 247wallst.com\n* * *\n### What is the best protection against identity theft?\n* Shred sensitive documents that display personal information, such as pay stubs, bank statements, credit card statements and pre-approved credit card offers.\n* When making online purchases, only share your credit card information on secure websites that display the yellow padlock icon in the bottom margin of your browser (below the web page area).\n* Create strong passwords that are ideally at least 8 characters long with one lowercase letter, one uppercase letter, one number and one non-alphanumeric character. Change them often.\n* Check your credit card and bank statements for unauthorized transactions.\n* Check your credit report regularly so you can quickly catch and resolve any unauthorized accounts or activity.\n### Conclusion\nThe dramatic increase in identity theft last year can be dishartening but don't let those sobering statistics keep you from being proactive when it comes to preventing ID theft. We are our own best defense, before and after the fact. Protect your personal information and keep close watch on your financial statements and credit reports. END

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TITLE: Information on Data Theft at ATMs CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nOver the last fews years, we have been hearing more and more stories about how sensitive information is being stolen from department store computers. Two big stories that come to mind are Target and Neiman Marcus where hackers made off with tens of millions of pieces of customer information including credit card numbers, expiration dates and the like. All of this information can be used by hackers to make duplicate credit cards and sell them on the black market. An unsuspecting person would not even know about the I.D. theft until either they were called by their bank or they pulled their credit report to find unauthorized credit accounts opened in their name. When these two things happen, it is too late and the damage has been done. You need to arm yourself with information and become proactive in the fight against identity theft so you do not become the next victim.\nATM Debit Card Data Theft on the Rise\n-------------------------------------\nAccording to a recent article in _The Wall Street Journal_, criminals are stealing card data from U.S. automated teller machines at the highest rate in two decades, preying on ATMs while merchants crack down on fraud at checkout. FICO data reveals that debit card theft at ATMs on bank property soared 174 percent from Jan. 1 to April 9, compared with the same time period in 2014. Successful debit card information theft at nonbank ATMs jumped by 317 percent. \"These tremendous spikes in fraud are unprecedented,\" John Buzzard, manager of FICO’s card-alert service.\nHow Do Thieves Steal Debit Card Data in the First Place\n-------------------------------------------------------\nYou can find an ATM just about anywhere - at your bank, in the mall at a kiosk, or at moveable stations at outdoor events. Having all of these ATMs does make it easy for us to get at our money, but it also makes it easier for someone to eavesdrop on your debit card information when no one is looking.\nIt seems the main way is the use of devices to fraudulently \"skim\" data from ATM cards so crooks can drain your bank account. Skimmers have evolved, and the new devices are so small and thin, they’re pretty easy to miss. The new skimmers sit within the throat of the ATM card reading slot, making them difficult to detect. The skimmers are used in conjunction with hidden cameras, which record consumers’ personal identification numbers as they type them in.\nThis type of hacking device is very easy to use at ATMs which are not located at a banking location. Which is why, it is always smart to use only ATMs that are located in or around a bank where security is much tighter, than the random ATM found at a golfing event.\nHow to Avoid Having Your Debit Card Data Stolen\n-----------------------------------------------\nThe first tip is, as we stated above, use ATMs located in or around banks. These machines have better security cameras around and if you are going inside to use the ATM, chances are there is a security guard around. This added security deters the would be thieves from installing a skimmer into the machine. It also deters someone from standing too close behind you and using a hand held type of skimming device.\nSecondly, we suggest when you do use any type of card reader or ATM, make sure to use your hand to cover the keypad. That way no one standing behind you can look at the PIN you are entering. Thieves have been known to watch a person type in their PIN and then follow them outside to steal their purse or wallet. Having this PIN enables the thief to empty out your account before you can place a hold on it.\nUnfortunately, with identity theft on the rise and more high-tech devices being used to steal your information, being well informed is the best way to not become a victim. Also, be careful about where you do your banking and always look around you when going to an ATM, especially if it is an area you are not familiar with. Taking these extra precautions will help keep your private information, private, and keep you finances safe. END

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TITLE: Familiar Fraud and ID Theft Among Family and Friends CONTENT: Identity Theft Among Family Members and Friends Can Happen To You\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nHaving your identity stolen is a very disheartening and often terrifying experience — knowing that some complete stranger is posing as you and opening credit card and\/or bank accounts in your name. What if the thief was someone you knew and trusted? A Javelin Strategy & Research report in 2014 noted there were 550,000 reports of ID theft perpetrated by someone the victim knew. Familiar fraud cases can be traced back to family members, friends, coworkers, and in-home employees.\nThink this can't happen to you? Here are some tips to identify and protect yourself against family or familiar fraud and identity theft.\nWhat is Familiar Identity Theft?\n--------------------------------\nWhen identity fraud victims know their imposters, it can tear through both relationships and financial well-being. \"Familiar fraud\" or \"Family Fraud\" occurs when a friend, extended family member or even a parent uses a close relationship for their own financial gain. The thief takes advantage of bonds of trust, making the crime emotionally devastating. The perpetrator already knows the victim's personal information or has very easy acces to it.\nMany cases of familiar fraud go undetected for years. For example, when parents use the financial identities of their children, the fraud often goes undiscovered until the children attempt to build their own credit.\nWhat to do if You are a Victim of Familiar Fraud\n------------------------------------------------\nRemember, bank fraud is a federal offense. Unfortunately, if you have had a family member or friend use your Social Security Number to fraudulently obtain credit, you have two options:\n1. Turn them in to the creditor. The credit card company will absolutely press charges against them.\n2. Pay off the debt yourself, if they can't. If you can't afford the debt your relative has racked up, your credit will take a hit.\nMost of the people who wrote to us about relatives whose identity had been stolen were absolutely distraught because they couldn't pay the debts opened in their names and refused to turn over a member of their own family to the creditors; they were facing an unsolvable problem.\nWe've seen every possible kind of family member act as a thief: father, mother, son, daughter, parents, grandparents, grandchildren, in-laws, sisters, brother. Don't let this happen to you. Take the steps necessary to protect your identity and your credit. END

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TITLE: Strong Passwords Prevent Identity Theft CONTENT: Strong Passwords Protect You From Identity Theft\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThe importance of picking a secure password can't be emphasized enough. Your password is the only way to verify that someone logging into a particular account is really you. In the scheme of preventing identity theft, this is at the top of the list.\nBesides making sure you shred sensitive documents, store your information safely, review your credit reports and make sure you don't give out your credit card information insecurely, you need to have proper password management in order to be safe from identity theft. Identity thieves can hack into your accounts pretty easily and gain access to your identity information if you pick easy passwords.\nWe've seen some simply horrendous password choices: \"password\" and \"abc123\" being the most common passwords. On some level, people know that they should pick good passwords. Conflicting with this precaution is the knowledge that good passwords are hard to remember and they can't be troubled to write them down. They become lazy and pick passwords that are easy to remember — and crack. They also use that same password for every account. This is just human nature, but human nature is known for getting people in trouble.\nMany people think that having your account hacked due to a bad password simply can't happen to them. Wrong. Password cracking software, even the most crude, can crack the majority of poorly chosen passwords in seconds. Sophisticated cracking software is often available online for free, and many hackers exchange cracking routines often online.\nWhat Makes a Strong Password?\n-----------------------------\n1. Your password should be at least 8 characters long, use one lowercase letter, one uppercase letter, one number and one non-alphanumeric character. Example: \"**39F@rever**\", which meets all of the rules. See? That wasn't bad, and not too hard to remember.\n2. You've probably heard this before, but it's worth mentioning. Don't use anything that someone could easily guess. Avoid using birthdays, anniversaries, children's or pet's names, Social Security Numbers, or anything like that.\n3. Do not use a password that can be found in the dictionary. It will be easily cracked. Also, anything that is sequential on your keyboard will be used by password crackers. In other words, \"QWERTY123\" is another example of a bad password.\nManaging Your Passwords\n-----------------------\n1. Use a different password for network account, computer access account, email account, credit card account and banking account. Make sure they are absolutely unique and non-hackable.\n2. Low security passwords are fine if you have accounts which will not compromise important information. Using these in multiple accounts are also ok.\n3. Write down all of your passwords on a sheet of paper. Do not store them on your computer. Keep them stored away from your computer.\n4. Must we say it? Do not store passwords on a public internet site.\n5. Change your passwords at least every 6 months. Yeah, this is a pain, but trying to recover your identity is a bigger pain.\nOther Tips on Creating Strong Passwords\n---------------------------------------\nYour username is one half of the keys that an identity thief needs to get into your account. You can further protect your name by picking a username that a thief can easily guess.\n1. Don't use your own name as your username.\n2. Just as you don't want to use the same password for multiple sites, don't use the same username for all accounts.\n3. Sometimes online services want your to use your email address as your username. If this is the case, all identity thief needs is your email address to start a systematic attack on your online accounts. Create a different email address to use as a username for each account especially banking accounts. Yahoo has disposable email accounts which are based on your base email account. All of these email accounts will be directed to your Yahoo base account. You can also set up free email accounts at many sites.\nSee the list of the top 500 worst passwords of all time. Approximately one out of every nine people uses at least one password in the list on that page, and one out of every 50 people uses one of the top 20 worst passwords. Don't be a statistic. END

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TITLE: Protect Credit Card Information Shopping Online CONTENT: How to Protect Your Credit Information When Shopping Online\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nLet's face it, shopping online has never been easier or more convenient than it is now. The bargains are there, shipping is fast, returns are pretty easy, and you don't have to get in your car and drive around for hours looking for that perfect gift or outfit for your next party. You can't beat shopping in your p.j.'s while drinking a cup of coffee.\nShopping online does carry some risk and it could lead to identity theft. You can be reasonably sure you'll have a safe experience shopping online as long as you follow some basic guidelines.\n### **Use Familiar Websites When Shopping Online**\nStart at a trusted site rather than shopping with a search engine. Search results can be rigged to lead you astray, especially when you drift past the first few pages of links. If you know the site, chances are it's less likely to be a rip off. We all know Amazon.com and that it carries everything under the sun; likewise, just about every major retail outlet has an online store, from Target to Best Buy to Home Depot.\n### **Look For Secure Lock Logo on a Website**\nNever ever, ever buy anything online using your credit card from a site that doesn't have SSL (secure sockets layer) encryption installed - at the very least. You'll know if the site has SSL because the URL for the site will start with HTTPS:\/\/ (instead of just HTTP:\/\/). An icon of a locked padlock will appear, typically in the status bar at the bottom of your web browser, or right next to the URL in the address bar. And, NEVER give your credit card number over email.\n### **Don't Give Out Personal Information**\nNo online shopping store needs your social security number or your birthday to do business. However, if crooks get them, combined with your credit card number for purchases, they can do a lot of damage. The more they know, the easier it is to steal your identity. When possible, default to giving up the least amount of information.\n### **Check Your Credit Card or Bank Statements**\nDon't wait for your bill to come at the end of the month. Go online regularly and look at electronic statements for your credit card, debit card, and checking accounts. Make sure you don't see any fraudulent charges. If you do, call the financial institution immediately so they can put a freeze on your account.\n### **Install Antivirus Software on Your Computer**\nThieves and hackers don't just sit around waiting for you to give them data; sometimes they give you a little something extra to help things along. You need to protect against malware with regular updates to your anti-virus program.\n### **Use Strong Passwords to Access Accounts**\nWe like to beat this dead horse about making sure to utilize uncrackable passwords, but it's never more important than when banking and shopping online. See our tips for creating a strong password.\n### **Privatize Your Wi-Fi Connection in Your Home**\nIf you do decide to go out with the laptop to shop, you'll need a Wi-Fi connection. Only use the wireless if you access the Web over a virtual private network (VPN) connection.\nBy paying attention to these tips, the odds of your being victimized by online fraud are pretty low. Here's to a happy and safe online shopping experience! END

TITLE: Using Social Media Sites to Steal Identity and ID Fraud CONTENT: Avoid ID Theft - Never Share Personal Information on Social Media\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nSocial media outlets are more popular than ever and not just with adults, but with teenagers as well. With the digitization of personal information and the popularity of social media, your privacy is at risk more than ever. Internet stalkers are just waiting for some unsuspecting person to share information on FaceBook, Twitter, Pinterest, or Google +, where they can steal it and use it for identity theft or fraud. You or your child may feel that posting trivial information on FaceBook is innocent, but you will be surprised on what little information an ID thief really needs to cause complete havoc in your financial life. The following pieces of information should never, or very sparingly, be shared on any social media outlet.\nNever Share Your Driver's License Information\n---------------------------------------------\nPosting this type of information may be more germane to your teenager. Your child may want to boost to their \"friends\" that they now have a driver's license or maybe they want to share that silly ID photo with all of the world. Unbeknownst to them, a driver's license or any form on I.D. contains more than just a funny picture, it contains date of birth, address, and sometimes even a social security number. One or more of these bits of information, in the wrong hands, is more than enough to steal your child's identity. Access to this information could allow identity thieves to open a new line of credit, like a credit card, and ruin your kid's credit in the process. \nDo Not Post Vacation Itinerary and Location Information \n--------------------------------------------------------\nWe all know how excited we are to share photos of the beach you are visiting or maybe the winery where you are going wine tasting, but this kind of information can be used by thieves. Not only does a burglar know you are not home, but they may know when you will be back since you have posted all of this information on FaceBook. Using all of this information, they can plan the robbery of your home or maybe your place of business, if you own a small business. If you use geotagging for your posts to show your location or list the city where you live, burglars can use this information, along with your personal information, to find out exactly where you live and target your home. We can't think of anything worse than coming back from a wonderful vacation to find your house has been robbed.\nNever Share Bank Account Information\n------------------------------------\nThis really should go without saying, but apparently it needs to be said - never, ever post any kind of financial information on a public forum such as FaceBook, Twitter, Pinterest or Google Plus. But imagine this, your child who just got their first job, is so excited about their first paycheck that they post a picture of the check AND they add #myfirstpaycheck to it. Need we say more? Any low-life identity thief can access that hash tag, or similar, and pull up all those posts from overly excited employees posting way more information than they should. A paycheck contains a lot of personal information, your name, address, where you work, banking information, which is more than enough to get your ID stolen. Not only is your child putting themselves at risk, but they are also exposing their place of business as someone could use the check information to create fake checks and steal from the business. \nLimit the Amount of Personal Information on Social Media Profiles\n-----------------------------------------------------------------\nLet's face it, most of us use one or more social media platforms to stay connected to our friends and family by way of sharing pictures, thoughts, and experiences with each other. Knowing that you want to share your info with only those people, you need to make sure you are adjusting your privacy settings on each forum. You are able to limit access to just your \"friends\" and you should make sure these people are really your friends. Limiting access is a great way to control who sees what when you are sharing information. You should also limit \"what\" you give out as personal information. Does everyone really need to know where you work, who you are married to, or what your birthdate is? If you are worried about ID theft, the less information you share the better and less chance your ID will be stolen.\nWith the increased global use of social media, comes the greater opportunities for ID theft and ID fraud to happen online. Social networking sites have the greatest potential for abuse due to the fact anyone can access them from anywhere in the world. Keep in mind the less personal information you share, the less chance you will fall victim to ID theft. Leave off sensitive personal information and only give out general information when it comes to posting activities and personal info. It is also a good practice to change passwords regularly and make sure your password is not your pet's name - which you posted on FaceBook. \nLastly, as we have recommended in other identity theft articles, pull your credit at lease once a year to make sure there is no fraudulent information on your credit. END

TITLE: Protect Your Personal Information While Online CONTENT: How to Shield Your Online Activity and Protect Your Identity\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nWith the growth of online government surveillance and prevalence of cybercrime, people are increasingly concerned about protecting their privacy on the Internet. Fortunately, there are a number of simple things you can do to shield your online activity, all of which are legal and recommended:\n* Hide Your IP Address\n* Encrypt Your Email Connections\n* Encrypt the Content of your Emails\n* Protect Your Email Address\n* Encrypt Instant Messages\n* Shield Your Credit Card Number When Making Online Purchases\n* Encrypt Your Connection With Every Website You Visit\n* Protect Your Anonymity When Downloading From a File Hosting Site\nHow Do I Hide My I.P. Address?\n------------------------------\nAn IP address, or Internet Protocol address, is a number unique to your computer or any other connectivity device. Online activity and geographic location is most easily traced through this number, thus the importance of masking it if you are interested in online anonymity.\nThere's more than one way to shield your IP address. Take a look at your options, try one or more out, and go with the one you're most comfortably using:\n* **Use a Proxy Server.** Your connection gets re-routed through a different server than the one you're actually on. An online search for \"free proxy servers\" should turn up plenty of options, though you may want to start with the proxy server extensions offered by whatever browser you use.\n* **Use a VPN.** A VPN, or Virtual Private Network, connects remote sites\/users together, masking individual IP addresses. Suggestions for providers include BolehVPN, Astrill VPN, Hamachi, Private Internet Access, Witopia, and AnchorFree's Hotspot Shield or Easy-Hide-IP.\n* **Use the Underground Internet.** TOR, or The Onion Router, is a network that utilizes hundreds of proxies to mask the identities of its users. As stated on its website, TorProject.org, the network prevents anyone from learning your location or browsing habits.\nHow Do I Encrypt My Email Connection?\n-------------------------------------\nWhen checking your email in a web browser, make sure the URL includes 'https' as opposed to 'http' (minus the 's' at the end). The 's' indicates that Secure Socket Layer (SSL) and Transport Layer Security (TLS) encryption is active. If you do not see the 's' at the end of 'http,' add it. This should work if your email provider supports SSL\/TLS encryption. (If not, think about switching providers.) So that you don't have to type an 's' into the browser every time you check your email, search the settings of your email account for a default encryption option going forward. As for desktop client email or email apps on your phone, look for encryption default options in the settings menu.\n### How Do I Encrypt the Content of My Emails?\nBeyond any encryption already built into your email provider's service, you can further encrypt by downloading PGP (Pretty Good ) software.\n### How Do I Protect My Email Address?\nFor communication with people or organizations that you don't want having your email address, you may want to try setting up a new email address used exclusively for such purposes. Keep it indefinitely or delete it after it has served its purpose.\n### How Do I Encrypt Instant Messages?\nTry TOR Chat or Cryptocat, both of which encrypt IM content.\nShield Credit Card Number When Making Online Purchases\n------------------------------------------------------\nFirst of all, only provide your credit card information to websites displaying 'https' in the web browser, an indication that that Secure Socket Layer (SSL) and Transport Layer Security (TLS) encryption is active. For added protection, however, you may want to try shopping with a virtual or single-use credit card number. Check with your bank to see if they offer such a service. If not, as of this writing, Bank of America and Citibank reportedly do.\nEncrypt Connection With Every Website You Visit\n-----------------------------------------------\nIf you use Firefox or Chrome, you can encrypt your communications with all websites by downloading **HTTPS Everywhere** software. As stated on its website: \"Many sites on the web offer some limited support for encryption over HTTPS, but make it difficult to use. For instance, they may default to unencrypted HTTP, or fill encrypted pages with links that go back to the unencrypted site. The HTTPS Everywhere extension fixes these problems by using a clever technology to rewrite requests to these sites to HTTPS.\"\nProtect Anonymity When Downloading From a File Hosting Site\n-----------------------------------------------------------\nWithout taking steps to hide it, your IP address is made visible when you download from file hosting sites. Protect yourself by using a proxy server or VPN (as explained above in how to hide your IP address). If you are using BitTorrent, BT Guard is specifically recommended.\n**Note, none of the suggestions outlined above eliminate the need for anti-virus, anti-spam, and anti-phishing software.** END

TITLE: Protect Your Personal Information While Online CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Protect Your Personal Information While Online CONTENT: | | | | \n: . END

TITLE: Shred Documents to Protect Yourself From ID Theft CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThe only thing worse than having an out-of-control pile of receipts, statements, and other personal documents is getting rid of something you should have held on to. Or worse, not shredding something that dumpster-diving thieves use to steal your identity. Why take chances? Here's what to shred, and when.\nBanking Documents You Should Shred\n----------------------------------\n* **Bank Statements.**  Shred monthly statements after 1 year. Hold on to annual statements related to your taxes. Or, better yet, switch to online statements. You'll receive them via email which makes for improved fraud protection, as well as quick and easy filing and accessibility.\n* **Cancelled Checks.**  Shred immediately. Scrawling VOID across the front may prevent that particular check from being used, but it doesn't stop thieves from stealing your account and routing numbers.\n* **ATM and Debit Card Receipts.**  Since these display only the last four digits of an account number, many people choose to simply throw them away. However, if you are more comfortable shredding them, by all means do.\nRegardless of whether you shred them or not, hold on to these receipts for up 45 days (or until after you have made sure they match up against your monthly statements). Exception: Hold on to receipts that show proof of payment for tax-related transactions.\nCredit Card Documents You Should Shred\n--------------------------------------\n* **Credit Card Monthly Statements.** Shred after 45 days. Exception: Hold on to them if they show proof of payment for tax-related transactions. As with bank statements, you should be able to opt in to online statements\/billing.\n* **Credit Card Receipts.** Shred after 45 days (or until after you have made sure they match up against your statements). Exception: Hold on to credit card receipts that show proof of payment for tax-related transactions.\n* **Credit Card Offers.** Shred immediately if you do not plan on applying for the card.\n* **Cancelled Credit and Debit Cards.** Shred immediately. If your shredder can't handle plastic, cut them into quarters and throw the pieces away in separate trash bins. Granted, they should be unusable, but some experts advise erring on the side of caution and shredding them anyway.\n* **Credit Card Convenience Checks.** Unless you plan to use them, shred immediately.\n* **Credit Reports.** Shred when you receive a more recent version.\nOther Documents We Recommend Shredding\n--------------------------------------\n* **Utility and\/or Phone Bills.** Shred after the bill is paid (and you have seen proof of such via a receipt or draft from your bank account.) Exception: Hold on to them if they qualify as tax-related transactions.\n* **Pay Stubs.** Shred after 1 year (or after making sure they match up against income reported on your W-2).\n* **Old Tax Returns.** Shred after 7 years, or not at all.\n* **IRS Has Three Years to Audit a Filed Return.** That is unless they suspect you have under-reported your income, in which case they have 6 years, or if they suspect you filed a fraudulent return, in which case they can audit you at any time. For this reason, many suggest holding on to your tax returns indefinitely. At the very least, you may want to hold on to your W-2s and 1099's.\n* **Social Security Statements.** Shred when you receive an updated version.\n* **Old Photo IDs.** Shred when expired.\n* **Medical Documents.** Shred physician statements and receipts after 1 year. Hold on to medical histories, prescription information, and physician contact information. Don't take any chances with this one. Medical identity theft is the fastest-growing crime in America. So if you're throwing a medical document out, shred it. Otherwise, you are giving thieves access to information that could be used to obtain prescription drugs, healthcare services, or even to collect money through fraudulent claims against your health insurance policy. What's worse, it could compromise your medical history and, in turn, your health.\n* **Insurance Documents.** Shred after the life of the policy, plus 5 years. Hold on to hospital bills and receipts, prescription information, and car repair receipts.\n* **Retirement Plan Statements.** Shred quarterly statements after 1 year. Hold on to your annual statements until you retire.\n* **Brokerage Statements and Investment Records.** Shred monthly statements after 1 year. Hold on to annual summaries for as long as you own the security, plus 7 years.\n* **Mortgage Documents.** Shred 6 years after the sale of the property.\n* **Junk Mail.** If it's addressed to \"Current Occupant,\" you can just trash it. As for junk mail addressed to you, experts advise shredding it.\nOf course, the best way of dealing with junk mail is to stop it. To opt out of credit card offers, go to optoutprescreen.com.\nTo opt out of other junk mail write: Mail Preference Service, Direct Marketing Association, P.O. Box 9008, Farmingdale, NY 11735. And call 1-800-407-1088. Include your complete name, name variations, and mailing address.\nShredding Options\n-----------------\nIf you're still using the old-school strip-cut shredder, think about switching to a cross-cut. The strip-cut shredder is less secure than the cross-cut as, theoretically, a thief could take the painstaking time to paste all of those thin strips of paper back together. Unlikely, yes. Impossible, no.\nThe cross-cut shredder is a great alternative, as it cuts paper into confetti-size pieces. Unfortunately, this does make the paper more difficult to recycle. Therefore, many people who use the cross-cut get creative with their confetti, using it in compost, as packing material, or as a fireplace starter.\nWhile all of this may seem like a lot to remember and do, the learning curve is worth it. Just remember, if it's a document you're not sure you should get rid of, hold on to it. And if it's a document you know you can throw out, but aren't sure you need to shred, shred it anyway. END

TITLE: Shred Documents to Protect Yourself From ID Theft CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Using a Password Manager to Prevent Identity Theft CONTENT: Do You Need a Password Manager?\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nWe already have so many accounts we’re signed up for — do we really need to throw a password manager into the mix? Well, as you might have already guessed, the more accounts you have, the _more_ you need a password manager. This is just one tool to help prevent identity theft and one of many ways you can protect yourself online. \n**Why You Need a Password Manager**\n-----------------------------------\n**1)** **You need a strong, unique password for every single account.**\nEven if you take the time to create a strong, unique password yourself, it may not be as strong as one randomly generated by a password manager.\nWhat’s worse is taking the time to create a strong password only to use it on every single one of your accounts. You can be sure that if a hacker manages to get a hold of that username\/password combo from _one_ of your accounts, they are going to try it on your other accounts, too.\nBottom line, you need a different password for every login, and all of them need to be strong. Granted, you could keep your own list of unique, hard-to-remember passwords, but that’s a lot of time spent referencing the list multiple times a day.\n**2)** **You only have to remember one master password.**\nWith a password manager, the only password you need to remember is the master you set up to login to your password manager account. Of course, your password manager still has to learn whatever credentials you already have set up. So, when you’re first getting started, you will still need to login to each account so that the password manager can store the information.\n**3)** **A password manager can generate new passwords for you.**\nIf the password manager sees weak or duplicate passwords, it can alert you that changes need to be made. The password manager can generate these changes for you, ensuring you have a strong, unique password for every single account.\n**Choosing a Password Manager**\n-------------------------------\nNot all password managers are created equal. Fortunately, _PC Magazine_ reviewed the best password managers of 2016.\n**_Free password managers_**\nLastPass looks to be the best way to go, with a perfect five-star rating. LogMeOnce Password Management Suite comes in a close second. The only thing on _PC Magazine_’s list that LastPass and LogMeOnce don’t do is store application passwords.\n**_Paid password managers_**\nLastPass ranks highest on this list, too, with another five-star rating. In this case, what you’re paying for is to store the application passwords that the free version does not do. Dashlane gets five stars, too, but does not cover application passwords or have a portable edition.\n**The Security of Password Managers**\n-------------------------------------\nAs secure as password managers may be, they are not immune to hacks. We learned that when the top-rated LastPass was hacked in 2015. While stored passwords for other sites were not breached, master passwords were stolen, as well as emails and other data.\nIn response to the breach, LastPass encouraged customers to use its multifactor authentication feature.\nAs stated on the LastPass website:\n\"Multifactor authentication refers to a device that can be enabled for use with your LastPass account, and requires a second step before you can gain access to your account. Multifactor authentication devices help protect your account from keyloggers and other threats – even if your Master Password were captured, someone would be unable to gain access to your account without this second form of authentication.\"\nFor instance, if you have multifactor authentication set up on your cell phone, then every time you login to your LastPass account, your phone receives a notification. You have to click the button on your phone or you can’t login to LastPass at all. Should you lose your phone, then you can disable the multifactor authentication, which requires verification through email.\nDashlane and LogMeOnce also offer multifactor authentication, as do most other passwords managers. END

TITLE: Early Warning Services LLC Prevents Financial Fraud CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 12, 2010_\nEarly Warning Services,LLC was formed to help eliminate fraud in the financial systems. The roots of this company were formed over 20 years ago and is currently owned by Bank of America, JPMorgan Chase, and Wells Fargo. This bank ownership offers openness and sharing of information between these institutions to help fight fraud.\nEarly Warning Services is based in Scottsdale, Arizona. Employees might be described as playing a role of \"risk detectives,\" seeking to keep their clients (banks, brokerages, credit unions) from losing money in ID theft scams or bad checks. According to their website, employees use collective knowledge and best practices in fraud management from leading financial services organizations to fight identity, deposit, and payment fraud. This intelligence is delivered through a suite of Early Warning fraud solutions, and may result in billions of dollars in annual loss avoidance.\nAccording to Paul W. Finch, Early Warning Services chief executive officer, the company estimates it is saving it's financial services clients more than $1 billion annually in fraud losses. Their website, www.early-warning.com, indicates that in 2006 they have screened 42.3 million identities and processed over 2.1 billion inquires. According to Finch, banks want to be more open with each other about the internal and external frauds they face. By joining forces, openness in information sharing is facilitated, and efforts to thwart frauds are more quickly recognized. As fraud continues to reach new levels of sophistication, the speed which current and accurate information is integrated in the processes that detect, prevent and deter fraud becomes critical.\nThe financial service industries that might benefit as Early Warning Services clientele would include financial institutions (retail banks\/savings and loans\/thrifts), brokerages, mutual fund companies, credit card issuers, check acceptance companies and others. Early Warning Systems has specific solutions that are tailored for each industry, but in general attempts of fraud will fall into one of three categories; deposit, payment, and identity fraud.\nEarly Warning Services promises to provide solutions to prevent each of these three fraud methods using a database provided by \"various organizations\" which shares their most current information on accounts, transactions, and identities. The following are the four major \"Solutions\" or programs that they offer clients:\n1. **DEPOSIT CHEK:**  For physical and online items presented for deposit or payment at financial institutions. Performs validation and status verification of the payer's checking account. Responses help detect fraud, prevent losses and expedite funds availability decisions.\n2. **IDENTITY CHEK:**  Distinguishes high-risk individuals from profitable customers with the end goal of opening more \"good\" accounts and reducing costly write-offs. This service identifies applicants with a prior history of fraud and\/or account abuse while also performing identity verification and compliance list screening.\n3. **PAYMENT CHEK:**  Identifies high-risk credit card remittance payments made from checking accounts. For both physical and online items, this service validates an account's existence, reports it's status and whether the payer's name, address and other elements match the account.\n4. **INTERNAL FRAUD PREVENTION SERVICE:**  Available to financial services organizations, it provides notification of job applicants and employees that have been released by another institution because they knowingly caused or attempted to cause financial loss.\n### What Does This Mean to Consumers?\nWell, provided the data in their system for an individual consumer is accurate, this seems a positive (for responsible individuals without negatives in their past financial account history). If it helps them save money, perhaps it will be passed on to us as consumers somewhere down the road. Ownership and control of this company by the banks themselves will no doubt encourage sharing of information for fraud control, bridge some of the competition gaps and perhaps ultimately reduce costs for all consumers.... END

TITLE: Early Warning Services LLC Prevents Financial Fraud CONTENT: | | | | \n: . END

TITLE: How to Remove Fraudulent Accounts Opened in Your Name CONTENT: How to Remove Fraudulent Accounts Found on Your Credit Reports\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nAs we all move toward doing just about all of our financial transactions over the Internet, the incidence of identity fraud is increasing. We have all heard the news stories of hackers gaining access to customer data information from big companies such as Target and HomeDepot. We have also heard reports about how a person's information was hacked from their personal computer. Unauthorized access to our personal information leads to identity theft and identity fraud. Once a thief has a few pieces of your personal information, he or she can then open credit accounts in your name. This is a sure fire way to trash your credit and lower your credit score. In this article, we will talk about how to remove any fraudulent accounts that might have been opened in your name and how to repair your credit.\nMonitoring Your Credit Is the First Line of Defense\n---------------------------------------------------\nYou may never know, or you may find out way too late, that someone has stolen your personal information and opened credit accounts in your name. The only way you will find this out is if you monitor your credit very carefully. Continuous monitoring of your credit files will immediately alert you to any identity fraud. Here are two ways to keep a close eye on your credit:\n1. Pull your credit reports once a year and review everything with a fine tooth comb. Look for any unauthorized credit inquiries, recently opened credit accounts, or incorrect personal information. You are able to get your credit reports for free once a year from AnnualCreditReport.com.\n2. Sign up for a credit monitoring service. This requires a monthly fee to keep it going but they will immediately send you a notification if any accounts or inquiries are posted to any of your credit files. We have put together an article summarizing all of the most popular credit monitoring offers.\nSteps to Take if a Fraudulent Account Had Been Opened in Your Name\n------------------------------------------------------------------\nIf an imposter has opened fraudulent credit accounts in your name, you will want to act fast to protect your identity and your credit. First, you need to immediately place a 90-day fraud alert on your credit file. This can be done by calling one of the three major credit reporting agencies and inform them that a thief has compromised your credit accounts. Our article Placing a Security Freeze on Your Credit File will give you more information on how to do this.  Once you contact one of the bureaus, they will contact the others and notify them of the fraud alert.\nHaving this fraud alert in place tells lenders to take extra steps to verify that you are the one who is seeking the request for new credit. It also entitles you to receive a free copy of your credit report from each of the three major credit reporting agencies. Again, review these reports carefully making sure to note any and all accounts that you do not recognize as your own.\nNext step is to file a complaint with the Federal Trade Commission (FTC). Print off a copy of the complaint and use it to file a police report with your local law enforcement agency. Additional information on doing this can be found in our article What to Do if You are a Victim of Identity Theft.\nThis next step is probably the most time consuming but is the most important — dispute all fraudulent accounts found in your credit file. Contact the financial company where the thief has opened the account and talk to their fraud department. Inform them you are a victim of identity theft and follow-up the conversation with a certified letter. Be sure to ask them if there is any paperwork you need to fill out for them, and if so, keep copies of all correspondence for your records.\nYou will also need to send a dispute letter to each of the credit reporting agencies informing them of the fraudulent accounts opened in your name. Request that the fraudulent accounts be removed from your credit file. It is a good idea to send all of these dispute letters certified mail with a return receipt and keep copies of all letters for your records. The credit reporting agencies have 30 days to investigate your dispute. If these bogus accounts are not removed after the first round of letters, keep sending the dispute letters until the accounts have been completely removed. Since this process may take a few months, you might need to place a second 90-day fraud alert on your credit files.\nMonitoring your credit scores is another good way to catch identity fraud. If you monitor your scores regularly and you notice a large, unexpected change, it is time to pull your credit reports. Chances are you will find some unauthorized activity in your credit files and you will need to act quickly. Keeping a constant watch on your credit reports and scores will notify you of any fraud and will give you the opportunity to act quickly and repair your damaged credit. END

TITLE: Steps to Take If You Are a Victim of Identity Theft CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nA recent survey from Bankrate.com found that 41 million Americans had been victims of identity theft in 2015, which equates to about two in five people who were victims. Knowing that sobering fact should make you even more alert to the potential of it happening to you, if it has not happened to you already.\nIt is important that you act quickly if you suspect you are a victim of identity fraud. In addition to reporting your identity theft to the following agencies, you may want to start a log of your efforts to protect yourself. This information could prove invaluable later in proving you are not responsible for false debts or even crimes associated with the identity theft. You may also want to read this article, The Tale of a Waylaid Wallet. Below are some suggested courses of action you should follow if you are a victim of identity theft.\nContact the Authorities\n-----------------------\nReport the crime to all police and sheriff's departments with jurisdiction in your case. Credit card companies and banks may require you to show the report in order to convince them of your innocence, and if they don't believe you, they may hold you responsible for bounced checks, charges made in your name, etc. If you can get it, it is an important piece of documentation.\nGive the police\/sheriff's department as much documented evidence as possible, and get a copy of your police report. Make sure to take note of your detective's (or the official taking the report\/handling your case)'s direct phone number. It will make it easier for creditors\/banks to carry out their own investigation.\nSome police departments have been known to refuse to write reports on such crimes. In a report issued by the FTC based on the identity theft hotline it set up (see below), the police took reports in 67 percent of the cases. If you can't get them to take a report, at least document your call and who you spoke with.\n**The FTC's Identity Theft Toll-Free Hotline:  1-877-IDTHEFT or 877.438.4338.**\nPull Your Credit Reports\n------------------------\nIn most cases, it is difficult to obtain a mortgage or car loan using someone else's identity, typically the thieves go for credit cards. Pull your credit report immediately to make sure no one has opened up new accounts in your name. Be aware, though that new accounts may not show up for quite a while (6 months or more), so be sure and check frequently for the first year. It might be a good idea to sign up for a credit monitoring program such as one of these listed.\nIf accounts have been opened up in your name, contact the creditors immediately with whom your name has been used fraudulently. Credit card companies have whole departments which handle nothing but fraud.\nPlace a Fraud Alert on Your Credit Reports\n------------------------------------------\nImmediately call and\/or write the the three credit reporting agencies (CRAs) listed below. Report the theft of your credit cards or account numbers, and ask to have your account flagged with a fraud alert. Typically, fraud alerts remain on your credit report for two years, and will prevent anyone (including yourself) from opening accounts without additional verification.\nToll-Free Report Fraud Hotlines:\n* Experian: 1-888-EXPERIAN (888-397-3742)\n* Equifax: 1-800-525-6285\n* TransUnion: 1-800-680-7289\nIf your credit report has already been damaged (inquiries you did not make, accounts you did not open have been placed on your report), go through the normal credit repair procedures to have these items removed. Point out that you have already placed a fraud alert on your report to strengthen your case. For items you cannot immediately remove, you may want to ask the credit bureaus to change the status of disputed accounts to \"disputed.\"\nCall Your Creditors\n-------------------\nIf your credit cards have been stolen, it's important that you act quickly to prevent as much responsibility for fraudulent charges as possible. Call your creditors on the phone and follow up your call with the facts in writing. Most creditors will issue replacement cards with new account numbers for your own accounts that have been used fraudulently with no trouble, if you act immediately. If fraudulent charges have been made to your accounts, at the very most you will be responsible for no more than 50 dollars.\n**Important Note:**  Ask that old accounts be processed as \"account closed at consumer's request.\" This is better than \"card lost or stolen\" because when this statement is reported to credit bureaus, it can be interpreted as blaming you for the loss. \nFinally, carefully monitor your mail and credit card bills for evidence of new fraudulent activity, in case your thief comes back to haunt you.\nNotify Your Banks\n-----------------\nIf you have had your ATM card, bank checks stolen or bank accounts set up fraudulently, close your accounts immediately. It is also wise to report it to any of the the following check verification companies your bank uses. **Don't** rely on them to do this.\nCheckRite: 1-800-766-2748 \nChexSystems: 1-800-428-9623 (closed checking accounts) \nCrossCheck: 1-800-552-1900 \nEquifax: 1-800-437-5120 \nNational Processing Co. (NPC): 1-800-526-5380 \nSCAN: 1-800-262-7771 \nTeleCheck: 1-800-710-9898\nMost banks use ChexSystems, and you may want to have an in-depth conversation with your bank about anything it may have reported to ChexSystems. Any negative items reported to ChexSystems will prevent you from opening up a checking account anywhere else for 5 years. If your bank has reported anything to ChexSystems as a result of your identity fraud, insist that it remove the listing immediately.\nAs a further stop-gap measure, put stop payments on any outstanding checks that you are unsure of, although this can cost you a pretty penny ($15\/check or more). Give the bank a secret password for your account _other_ than mother's maiden name (this is an easy piece of information for a thief to obtain).\nFraudulent Change of Address\n----------------------------\nNotify the local Postal Inspector if you suspect an identity thief has filed a change of your address with the post office or has used the mail to commit credit or bank fraud.  To obtain the phone number of your local Postmaster, call 1-800-275-8777. To find out where fraudulent credit cards were sent, notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with your mail carrier.\nCall the Social Security Administration\n---------------------------------------\nIf your Social Security number has been misused, call the Social Security Administration (SSA) to report fraudulent use of your Social Security number. As a last resort, you might want to try to change your number. Because of the many people trying to escape their bad credit by getting a new SSN, the SSA will only change your number if you fit their fraud victim criteria.\nYou may also be facing the possibility that someone is using your SSN number for employment to avoid paying taxes. To ensure this is not happening, you may order a copy of your Earnings and Benefits Statement and check it for accuracy.\nWeb: ssa.gov \nPhone: 1-800-772-1213\nNotify the Passport Office\n--------------------------\nIf you have a passport, notify the passport office in writing to be on the lookout for anyone ordering a new passport fraudulently. (Web: U.S. Passports & International Travel)\nCheck if Your Driver's License Number Has Been Misused\n------------------------------------------------------\nYou may need to change your driver's license number if someone is using yours as identification on bad checks. Call the state office of the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license. Go to your local DMV to request a new number. Also, fill out the DMV's complaint form to begin the fraud investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. END

TITLE: Signature Loans Are A Great Alternative to Credit Cards CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 16, 2017_\nA signature loan is a loan to which no collateral is needed and it simply requires your signature as a guarantee that you will repay the loan. Because this type of loan requires no collateral to back it up, it is referred to as an unsecured loan.\nSignature loans can help you reach your goals and bring you the finer things in life. In fact, even if you have bad credit, you can still obtain a personal loan to get the things that you want. Signature loans can help you avoid exorbitant credit card fees, overdrawn checking accounts, and costly interest fees. They can even help you rebuild your credit. The credit scoring model gives favorable heavy weight to timely payments made on a signature loan.\nWhere Can You Get a Signature Loan?\n-----------------------------------\nThe first place to shop for signature loan is where you normally bank. If you have a relationship with your bank or credit union, you might find they have exceptional values as far as fees and interest rates. Absolutely do not consider a payday loan — the fees on these types of loans can range up to 450 APR. Signature loans allow consumers to spread the payments out over the course of several years.\nHow Do Signature Loans Work?\n----------------------------\nA personal installment loan or signature loan works just like an auto loan or mortgage. The borrower makes regular monthly payments, equal in value, to repay the loan. Just like a mortgage, with each additional payment, the principal balance of the loan decreases and the amount of interest due that year decreases as well. The amount of interest paid throughout the course of the year is defined in the APR or annual percentage rate.\nAsk questions when applying for your loan. In some cases, automatic payment might reduce the interest rate that you are charged on the balance of the loan. Paying the loan off early or making extra payments is always a good idea and can dramatically decrease the amount of interest overall.\nEven if you have a good relationship with your bank or credit union, some restrictions might apply in order to obtain a signature loan such as you might need to have a good credit rating or a credit score above 450. Typically, a minimum amount must be borrowed up to a maximum cap on the borrowed amount.\nAfter You Get the Loan\n----------------------\nMost signature loans feature a coupon book for payments that will be mailed in while those that are set up for automatic withdrawal from a checking account do not. In most cases, loans of this type require a monthly payment that remains the same throughout the entire term of the loan. This still requires effort on your part to remember the payment and mail the check. For the ultimate lazy man's way, online banking not only saves you the cost of a stamp, but you can have the money automatically drawn from your account.\nIn summary, personal signature loans beat credit cards, store financing and payday loans as the means to get that new shiny toy you are desperate to have. You need to make sure, of course, that you can afford it, as the terms are anywhere from 3 to 5 years. END

TITLE: Waylaid Wallet Tale of a Stolen Credit Card CONTENT: The Woeful Tale of a Waylaid Wallet\n-----------------------------------\n###### Written by: Kristy Welsh\n_**Things to think about before you lose yours.**_ \nby Maureen Rooney\nI can't say for sure whether my wallet was lost or stolen. All I do know for certain is that whoever \"found it\" helped themselves to the contents.\nThis tale begins with an early morning call from my credit card company. It continues through a week of my life, calling and visiting everyone remotely related to the contents of my wallet. It starts like this:\n\"Ms. Rooney? This is Julio from MBNA fraud detection. Did you buy gas with your credit card last night?\"\n\"Huh?\" I responded brilliantly, not fully awake yet.\n\"You don't normally buy gas on your Visa. I'm calling to make sure you have it in your possession.\"\nI mumbled something, hopefully \"Hold on a minute,\" and went in search of my purse.\n\"My wallet is missing,\" I told Julio, as I began a mental inventory of its contents:\n* Credit cards (one Visa; one MasterCard)\n* Debit card\n* Driver's license\n* Health insurance card\n* Library card\n* About 50 dollars in cash and a phone card (kissed goodbye)\n**Cancel your credit cards.** \nApparently, it is not uncommon for credit card thieves to try a stolen (or found) card at a gas pump to see if it is active, so the fraud detection folks watch for that. I last had my wallet in my hands at 7:00 pm and just 12 hours later, I was chatting with Julio. Fraud detection has gotten good.\nJulio ran through recent charges with me, identifying the last one that was mine, and then closed my Visa account. I asked him to check my MasterCard (also with the same company) and he found a gas charge on that one, too. He closed it.\nI only carry two credit cards in my wallet. My department store cards are filed safely away until I need them. I recommend you do the same. The fewer cards you have in your wallet, the fewer you'll need to cancel and reopen should you encounter a thief.\nJulio told me that my new cards would arrive in 5 days and recommended that I add password protection to the accounts. (The password would replace the standard mother's-maiden-name since a thief with a few research skills could uncover that with just a bit of patience.)\n\"What else was in your wallet?\" Julio asked me.\n**Shut down your debit card as soon as possible.** \nI live on my debit card, so canceling my card was going to be a major inconvenience, I thought. But my credit union was great. When I called to tell them the card was stolen, they closed it, and told me that I could come into the branch office and get an immediate replacement. I let out a sigh of relief.\nThey checked for the last transaction. Luckily, it was mine. If it hadn't been, I would have been liable for the first $50 of the fraud spree as long as I reported it missing within 48 hours. Don't delay in reporting a missing debit card or the stakes get higher. It could also be a nightmare to get your account back in order if your thief has enough time to shop until he's debited your account balance down to zero.\nI asked to have password protection added to all bank accounts, including my new debit card, replacing my mother's maiden name with a word that no thief would be able to find. (Don't use the last 4 numbers of your social security number, your phone number, your birthday, or anything else that might be obvious to a thief.)\n**Put a fraud alert on your credit files.** \nJulio recommended that I place a fraud alert with the three credit reporting agencies. Since the new FACT Act went into effect this year, it has gotten easier to do this. The Federal Trade Commission offers helpful step-by-step information by phone or online:\nFTC ID Theft toll free Hotline: 1-877-438-4338\nI called the first Credit Reporting Agency (CRA) on the list of numbers Julio provided. By calling any one of the CRAs and providing your SS number, date of birth, street address, zip code and home phone number, you can place an immediate alert on all your credit files. The one you call will share the report with all the others.\nCRA toll-free 24-hour fraud assistance hotlines:\nEquifax 1-800-525-6285 \nExperian 1-888-397-3742 \nTrans Union 1-800-680-7289\nA fraud alert makes it harder for thieves in possession of your personal information to open new credit in your name. New credit won't be granted until the creditor calls the number you provide to verify that it's really you opening accounts. This will make it a bit harder for you to open new credit on the spot, too (but that's not entirely a bad thing. If the urge to impulsively open new credit strikes, it will be squelched by the fraud alert. And by the time you get home to confirm by phone, perhaps the urge will have passed!)\nAll three CRAs will send free credit reports when you place an alert on your file so you can check to see that nothing unseemly has already transpired. (Mine were in my mailbox just 5 days later.) It is recommended that you pull your reports every three months for a year, then once a year in the future. Why? Because accounts may take a while to appear on your reports. And smart thieves will file your information away for a while, then use it in the future to open fraudulent accounts once you've forgotten all about it.\n**File a police report** \nIt's wise to report the theft to your local police and get a copy of the police report, Julio advised. Hopefully, you'll never need it. But it will make it easier to prove that future credit card charges are not your liability should your thief decide to use your identity in the future.\n**Your driver's license** \nNot long ago, Arizona used my Social Security number as my driver's license number. When they offered the option to use a different number, I jumped on it. If your driver's license includes your SS number (in addition to your birthday and address), a thief has everything he needs to help himself to your credit.\nIf your state still uses SSNs as the drivers license number, ask for a different number. If the clerk says no, ask for a supervisor. Sometimes the first person you talk to just answers by rote. If the answer is still no, Xerox your diver's license, black out the SSN, and carry the copy. Leave your original filed away in a safe place.\n**Your Social Security card** \nI assured Julio that my social security number wasn't in my wallet. \"Good,\" he said, \"You should never carry your Social Security card in your wallet.\" A Social Security number makes it easier for a thief to apply for credit or otherwise fraudulently use your identity. My Social Security card has never been in my wallet, but my number-I now realize-was in my wallet. In several places.\n**Health insurance cards** \nIf your health insurance plan uses your Social Security number as a member ID number, it's probably on your insurance card. Mine, unfortunately, was. When I called to get a replacement card, the representative was stumped by my request for a different ID number. She couldn't even fathom why I might care.\nCalifornia, as is often the case, is leading the way with a recently enacted law barring health care providers from requiring SSNs for access to products or services, from printing SSNs on cards, or from printing SSN on any materials that are mailed. In April 2004, Arizona passed new legislation (HB 2116 and HB 2382) that will similarly restrict the use of SSNs for all Arizonans beginning January 1, 2005 \"on any card required for the individual to receive products and services.\" I had to point this out to my membership rep before she would send me the necessary form to request a different number. Be patient and persistent.\nIn the meantime, if you are unable to get your insurance plan to change your number, photocopy your card, black out your SSN, and carry the copy. You can then give a health care provider your number separately.\n**Student IDs** \nI haven't been a student in years, but I clearly remember how often I had to provide my Social Security number when I was in school. Back then, it served as the ID number on my student ID card. Before my freshman year was out, my SSN was indelibly etched in my memory.\nThe state of New York already limits the use of SSNs in schools and colleges. Arizona legislation now provides similar protections in this state. If your school prints your SSN on your student ID or posts grades by SSN, get vocal, and get that practice changed. It's a bad practice that makes you a mark for opportunistic identity thieves.\nI didn't have a student ID in my wayward wallet, but I did have a \"guest library card\" from my alma mater. It never even occurred to me that my library card was emblazoned with my SSN.\n**Library cards** \nMy replacement \"guest library card\" from the university will not have my Social Security number on it, thanks to new Arizona legislation. If yours does, ask for one that doesn't.\nClose your library card account. Heaven forbid your clever thief checks out expensive art books on your card to sell at the swap meet. This does happen, according to my librarian, although it is more often CDs, DVDs and videotapes that go missing from the library shelves this way.\n**Be smart. Take precautions.** \nIf you don't have a passport filed safely away somewhere, make a copy of your drivers license to keep in your secured files. You will need photo ID to replace your missing drivers license, debit cards, etc.\nGuard your personal information jealously. If anyone asks for your social security number, say you'd prefer not to give it. Oftentimes, that is a good enough answer. In addition, many credit cards and the new passports issued by the US this year (2008) will contain an RFID (radio frequency ID) chip, making it easy for a thief to steal your info without laying hands on your wallet. For more info, read this post on RFID chips.\nSome businesses (health insurance and auto insurance, to name just two) will not do anything for you without your SSN. To get their coverage, you have to provide it. But ask them not to use it on membership cards and not to print it on anything they mail to you.\nIf you suspect someone is fraudulently using your Social Security number, call the Federal Trade Commission's Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338) or go online to the FTC Web site and fill out an identity theft affidavit.\nI sincerely hope your wallet never goes wandering like mine did. But on the off chance that it could, be smart about the information you will be sharing with your thieves. END

TITLE: Unsecured Loans - Personal Loans Do Not Need Collateral CONTENT: Unsecured Personal Loan — Make Sure to Read the Fine Print\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAre you thinking about making a large purchase in the near future but don't have the cash on hand to pay for it all up front? Then, think about taking out an unsecured loan from one of your local banks or credit unions. Unsecured personal loans allow you to borrow money for almost any purpose.\nAn unsecured loan is a loan that is not backed by collateral. These loans are also referred to as personal loans or signature loans. An unsecured loans is based solely on the borrower's credit rating, so as a result, they are much more difficult to obtain than a secured loan. But, before you get an unsecured loan, make sure you understand how they work and what the alternatives are.\nTypes of Unsecured Loans\n------------------------\nThere are several types of unsecured personal loans available, each one has it's pros and cons. It is best to pick the one the best meets your needs while minimizing cost to you.\n* **Signature Loans** — This is most basis type of unsecured loan and they are secured by nothing other than your signature. You can use this type of loan for just about anything and they are available at banks and credit unions. If you have good credit, you will get a relatively low interest rate. If you have bad credit, this type of loan will help you rebuild your credit.\n* **Credit Cards** — Credit cards are another way to borrow money. Credit cards may be easy to get but make sure to look at the interest rate before you sign up - you could pay as much at 24% if you have bad credit. Looks for low interest cards and ones with no annual fees.\n* **Student Loans** — Another unsecured loan is a student loan which is designed to fund your education. Look for features such as flexible repayment options, grace periods, and subsidies. The only hitch with this type of loan is that you have to be a student.\nWhat to Look For When Shopping for an Unsecured Loan\n----------------------------------------------------\nIf you are currently shopping for an unsecured personal loan, you should know that other than the interest rates, you should also be looking into the documents you will have to sign when you finally get your loan. Most contracts for unsecured loans contain provisions in small print that many borrowers take for granted and do not bother to read at all. Learn what you should be looking for in the small print provisions and do review the loan documents while you're still shopping and not when you're ready to sign them before the loan release. This way, you can be assured that you're getting the best possible terms for your loan. Lenders usually include in the small print their provisions covering loan insurance, penalties on prepayments, and adjustments on APR (annual percentage rate).\n### Penalties on Prepayment\nThe means the lender will charge you a fee if you pay off your loan before the agreed term. While this is not especially common for unsecured loans, it is a requirement on secured mortgage loans. The fee is basically a penalty for your prepayment and is meant to compensate the lender for the additional interest income it would have earned had you kept the loan outstanding until the agreed term.\nSome lenders may not be clear about their policy on prepayment but try to look for it in the small print section of the loan contract. You can always look for a loan provider that does not charge prepayment penalties or at least go with the lender that charges the least in penalties.\n### APR Adjustments\nAnother common policy in small print is the adjustment on APR. This type of loan was dubbed a \"sub prime\" loan in the mortgage industry and is one of reasons the housing market blew up.\nMany lenders advertise a certain APR but this is usually given only to highly favored customers. So if your credit is less than perfect, expect a higher APR for your loan and any adjustments on your interest rate are customarily written in small print. By law, lenders are required to inform borrowers about their APR before signing any loan documents and by practice, lenders do so by putting them down in the small print section of the contract. Your signature on the same document signifies your knowledge of the APR you will have to pay. Therefore, you must read the small print to know how much they are charging you.\n### Loan Insurance\nLoan insurance is not common on unsecured personal loans, but it does occur. In rare occasion lenders require loan insurance to cover your payments in case you cannot pay your loan because of injury or loss of employment. The insurance premiums are usually added to the loan payments you have to make.\nThere is no doubt that loan insurance will help protect your credit in case of adverse developments but you need to be concerned about its added costs to you. Know that lenders and the insurance company they endorse are normally affiliated and the insurance they're tacking in your loan is usually not the best offer you can get. Know also that you are not required to buy your insurance through the lender. You can shop around so you can get the best loan insurance deal you can find. However, you should shop for your insurance before getting your loan so you won't be forced to accept the lender's insurance when the time comes.\nThe only way you can avoid the usual small print tricks lenders use on unsecured personal loans is by asking lenders for a copy of their loan contract when you're still shopping. It should not be a problem for lenders to provide you with a copy of their standard contract. Do remember that the APR a lender will charge you is not going to be in the contract yet. You will get that information before you sign the document but at least, you'd know where to look for it. END

TITLE: Information on Peer-to-Peer Lending and P2P Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 5, 2017_\nAre you in the market for a personal loan but having trouble qualifying through a traditional bank? Are you an investor looking for an alternative to traditional investments? If so, it’s worth looking into peer-to-peer-lending. Find out what it is, how it works, and whether it’s right for you.\nWhat is Peer-to-Peer Lending?\n-----------------------------\nPeer-to-peer lending is pretty much what it sounds like — individuals (investors) lending money to individuals (borrowers). There is no brick-and-mortar bank involved. Instead, the middleman is an online platform that matches investors with borrowers. The same platform services the loans, too.\nPeer-to-peer lending is also known as person-to-person lending or P2P.\n**What Are the Peer-to-Peer Lending Platforms?**\n------------------------------------------------\nLending Club and Prosper are by far the two leaders in the peer-to-peering lending marketplace.\nLending Club finances both personal and business loans. Prosper only finances personal loans, but you can use the money for business expenses.\n**What Can Borrowers Finance Through Peer-to-Peer Lending?**\n------------------------------------------------------------\nYou can finance pretty much anything. For instance, Prosper’s drop-down menu of loan purposes includes debt consolidation, home improvement, medical\/dental, business \\[expenses\\], large purchase, household expenses, auto\/motorcycle\/RV\/boat, taxes, baby & adoption, other. (They also list special occasion and vacation, but those aren’t purposes for which we recommend taking on debt; save up for those instead.)\n### **How Much Can Borrowers Finance Through Peer-to-Peer Lending?**\nIt depends on the platform. For instance, Prosper offers personal loans from $2,000 to $35,000. Lending Club offers personal loans from $1,000 to $40,000 and business loans from $5,000 to $300,000.\n### **What Fees Are Involved With a Peer-to-Peer Loan?**\nBoth Lending Club and Prosper charge borrowers interest fees and origination fees that vary depending on credit rating and length of the loan.\n### **How Long Do I Have to Pay Back a Peer-to-Peer Loan?**\nLoan terms for personal loans through Lending Club and Prosper are 3 or 5 years. Loan terms for business loans through Lending Club are 1 to 5 years.\n**What Are the Benefits of Peer-to-Peer Lending?**\n--------------------------------------------------\n### **Benefits for Borrowers**\n* Application and approval process is fast and easy – apply online, receive an answer within minutes, and receive funding (if qualified) within days.\n* May be easier to get approved for a loan than through the traditional banking systems.\n* If the platform reports payment history to the credit bureaus, borrower is able to build good credit.\n* The same consumer protection laws apply as through traditional banking systems.\n### **Benefits for Lenders**\n* Lenders can choose the loans they want to finance.\n* A lender is able to earn interest higher than what can be earned through other types of traditional investments, like savings accounts and CDs.\n* Risk-adjusted returns, as investors can spread their investment over a number of different loans.\n### **What Are the Drawbacks of Peer-to-Peer Lending?**\nSince peer-to-peer loans can be easier to get than traditional loans, borrowers may be tempted to take on debt they don’t really need or can’t afford. Borrowers will also be charged a loan origination fee as high as 5 percent.\n**What’s the Difference Between Peer-to-Peer Lending and Crowdfunding?**\n------------------------------------------------------------------------\nPeer-to-lending is a loan that must be paid back in its entirety, plus interest. Crowdfunding is donations that do not need to be paid back. That said, crowdfunding may require recipients to provide something to donors\/investors in return for donations, like shares of their business or rewards\/prizes.\n### **How Do Borrowers Qualify For Peer-to-Peer Loans?**\nSpecifics depend on the platform but, in general, a number of factors determine eligibility, including credit score, income, and debt-to-income ratio.\n### **What if a Borrower Defaults on Their Peer-to-Peer Loan?**\nAs with traditional loans, peer-to-peer loans in default enter into the collection process, which is handled by the lending platform (e.g., Lending Club, Prosper).\n**Learn about consumer protection in the peer-to-peer lending market.** END

TITLE: Advantages to Using a Personal Loan CONTENT: Advantage of Using a Personal Loan to Pay Down Debt\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nWhen you are knee deep in debt, you are always looking for ways to pay off or pay down those high interest credit cards or high interest loans. If you have a credit card or loan that has an interest rate of 25 percent or more, it seems that the balance due never seems to go down — no matter how much you pay each month. But what if you wanted to make a large purchase or go on a vacation, where will you get the money to pay for such an expense? Not on that maxed out credit card — that's for sure! How about getting a personal loan or a line of credit. Here are some advantages to using this type of financial tool. \nPersonal Loans Are Flexible\n---------------------------\nPersonal loans are usually multipurpose, unlike a car, home or student loan which can only be used for one purpose. You can use a personal loan for travel, medical expenses, home remodeling, or financing your wedding. There may be some lending institutions which require you to specify what you are using the money for so it is important to read the information very carefully. \nFast Money with a Personal Loan\n-------------------------------\nDepending on where you go to apply for your personal loan, sometimes you can get the money you need the same day you fill out your application. Because getting a personal loan can usually happen pretty quickly, the faster you can make payments on debts you might be late in paying.\nCompetitive Rates and Low Monthly Payments\n------------------------------------------\nDifferent lenders offer different rates for personal loans, so shop around to get the best deal. If you have a bank with which you already have a relationship, go to them first as they may offer you the best deal. Credit unions or local banks are usually the best place to get this type of loan. Along with a good rate, some banks may offer variable or fixed rate so make sure the rate you choose does not leave you with payments higher than you can afford.\nAnother advantage of using a personal loan to pay off other debts is the lower monthly payment. Not only are you paying off a high interest debt, but your monthly payment will be lower which frees up some cash for you each month. Instead of being strapped each month to make sure you can make ends meet, you will have a little bit of extra money left over which can be put into an investment account.\nLittle to No Collateral Needed For a Personal Loan\n--------------------------------------------------\nA personal loan does not usually require as much documentation, like a mortgage or a car loan, which makes the processing time of this loan much quicker. You also don't typically need any collateral or security to put against the loan.\nWe think this goes without saying, but we will say it anyway, anytime you are borrowing money it is important to make sure you are making a good financial decision based on your current situation and goals. It is also important to make sure your monthly payment will be affordable and you don't take on more debt than you need. While taking on a personal loan can help you build your overall wealth, it is a good idea to weigh in whether or not you will be getting your money's worth and you aren't paying too much in interest. END

TITLE: Everything You Need to Know About Payday Loans CONTENT: Payday Loans — Predatory Lending, Payday Advances, Cash Advance\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nBeware of Payday Loans\n----------------------\nIn recent years, it seems as though there is a \"Check Cashing\" or \"Payday Loan\" outlet springing up on every street corner. These predatory lending outlets tend to cluster in low-income neighborhoods, their billboards exclaiming, \"Get fast cash until payday!\". There are ads on television, the internet, radio, newspaper, bulk mailers... everywhere we turn we see this seemingly fantastic offer to provide us with modest amounts of quick cash that will carry us over until our next paycheck arrives. Another disturbing trend involves utility companies, many of which are turning to these retail outlets to take payments for them: click here to read more about this.\n### What is a Payday Loan?\nPayday Loans are small-dollar, short-term, unsecured loans that the borrower commits to repay out of their next paycheck. These loans are made by storefront lenders, check cashers, pawn shops, even on the internet. The borrower is given cash in exchange for a personal check, which is held for future deposit by the lender. Known also as deferred deposit advances, check or cash advance loans, or post-dated check loans, they have become an incredibly popular method for consumers to obtain quick cash.\nTypical loans are for amounts ranging from $300-$700, due on the borrower's next payday, at a cost of $15 to $30 per $100 loaned. This equates to in incredibly outrageous interest rate: 390 to 780 percent annual percentage rate (APR)! Under the Truth in Lending Act, the cost of payday loans (like other types of credit) MUST be disclosed to you in writing (this includes the dollar amount of the finance charge and the APR). So, one might ask, who in their right mind would knowingly agree to a fee this high?\n### How Payday Lending Works\nAll a consumer needs to qualify for a payday loan is a source of income and bank account. The borrower then writes a personal check payable to the lender for the amount desired, plus the 15-30% fee. The check will be held for one to four weeks, until the borrower's next payday. At that time the borrower may redeem the check by paying the face value, or simply allow the check to be cashed. If the borrower cannot come up with the money at the end of the term and extends or \"rolls-over\" the loan, he\/she will be responsible for double the fees (or beyond).\n### Why Would Anyone Choose a Payday Loan?\nBorrowers who obtain payday loans generally have credit or cash flow difficulties, and limited other alternatives for low-cost loans. According to industry experts, paying late utility bills, making rent and buying groceries are the top reasons consumers use payday loans. They are easy to obtain, widely available, and appear to be a quick solution for needy consumers. Most payday lenders perform only minimal analysis of the borrower's ability to repay the debt; they generally do not obtain or analyze information regarding the borrower's total level of indebtedness or information on credit history from the three major credit bureaus (Equifax, Experian, TransUnion). Sadly, the ultimate result is that many low-income earners unwittingly take on more debt than they can handle.\n### What is the Future of Payday Loans?\nThe payday loan business has exploded exponentially in the last ten years, and it is becoming painstakingly clear that without increased regulation, will continue to proliferate debt in our society. According to the investment firm Stephens Inc., there are approximately 24,200 Payday Loan outlets in the United States, with the industry generating $47 billion in annual fees, including $5.65 billion (or 14%) online. According to sources at the Arizona Department of Financial Institutions (the \"home state\" for Creditinfocenter), there are 98 different payday loan companies operating 720 branches throughout the state; up from 615 sites only 18 months ago. Add to this equation the online lenders, many of which are based offshore (such as Costa Rica). These lenders are even more difficult to regulate, and may not follow federal or state laws.\nPayday lending is currently regulated in 37 states and the District of Columbia. Many states are in the process of attempting to enact legislation that would impose interest rate caps or other restrictions on payday loans. The Federal government has capped interest rates on loans offered to active duty military personnel at 36%. Although this is a step in the right direction, it only helps one subgroup of \"victims\" of this lending practice. In Arizona, the \"sunset\" law that permits Payday lending stores to do business expires 7\/1\/2010. Local Lawmakers recently deadlocked on a Bill (HB 2224) governing payday lending stores in Phoenix, which proposed restrictions such as limiting borrowers to one loan at a time; requiring that lenders utilize a database to confirm applicants don't have existing loans; requiring internet lenders to be licensed by the state; and, giving borrowers the right to repay the loans over a longer period than the original agreement. Although this particular proposal failed, many states are pursuing similar legislation to implement limitations and controls on the payday lending industry.\nThe payday lending industry has a national trade group called the Community Finance Services Association of America (CFSA). The Community Financial Services Association of America (CFSA) was established in 1999, and according to their website, CFSA is the only national and exclusive advocate for the payday advance industry and its customers. It is comprised of more than 150 member companies representing over half of the estimated 22,000 payday advance locations nationwide. Their site contains information for the consumer, including their (industry) view of the pros and cons of payday advance loans.\n### Alternatives to Payday Loans\nClearly, the first thing to do is to do your research\/shop around carefully when you need a loan!\n* Consider credit unions or small loan companies; many credit unions are now offering low-cost short term loan programs as an alternative to payday loans.\n* Consider a loan from a friend or family member\n* Inquire about getting an advance on your paycheck from your employer, if possible.\n* If you have debt, ask your creditors for more time to pay your bills; be sure to ask what fees if any they might charge for an extension.\n* Consider a cash advance on a credit card (but ensure you've done your research first).\n* Take inventory of your assets, sell something of value you don't feel you need any longer.\n* Obtain overdraft protection on your checking account (if you don't already have it) but ensure you read and understand the terms associated with this protection.\n* Consider contacting a local consumer credit counseling service if you need help working out a debt repayment plan; many of these services are free or very low cost.\n* Compare the APR and the finance charge (including ALL fees) for each credit offer to find the lowest alternative.\n* If you absolutely feel you have no alternative but to borrow from a payday lender, ensure that you borrow ONLY what you can afford to pay with your next paycheck and still have enough money to get to the next pay day!! END

TITLE: Everything You Need to Know About Payday Loans CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Use the Financial Aid Shopping Sheet to Breakdown College Costs CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nWhen you're shopping around for the right college, how much it's going to cost you ranks right up there at the top of your priority checklist.\nUnfortunately, what college really costs isn't always made crystal clear, leaving many students and their parents surprised by just how much they end up spending by the time it's all said in done.\nThis is particularly frustrating, and downright damaging, when it comes to accumulation of student loan debt.\nThe _Financial Aid Shopping Sheet_ is proving a helpful remedy.\nWhat is the Financial Aid Shopping Sheet?\n-----------------------------------------\nDeveloped by the Consumer Financial Protection Bureau (CFPB), the Financial Aid Shopping Sheet is a standardized breakdown of information that every college in the country has been asked to provide to prospective students.\nThis tool not only enables students to quickly see what one particular college is going to cost, but also to easily compare one college to another.\n### What Information Does the Financial Aid Shopping Sheet Include?\nAimed at making the cost of college as straight-forward as possible, the Financial Aid Shopping Sheet provides a detailed breakdown of the following:\n* **Estimated Cost of Attendance**, including tuition and fees, housing and meals, books and supplies, transportation, and other educational costs.\n* **Grants and Scholarships**, including school grants, federal Pell grants, state grants, and other scholarships that may be available to you.\n* **Net Cost** (i.e., cost of attendance minus grants and scholarships).\n* **Payment Options**, including work-study programs and loans, as well as the family's contribution based on what was reported on the FAFSA (i.e., payment plan options, Parent or Graduate PLUS Loans, military and\/or National Service benefits, and non-federal private education loans).\n* **Other School-Specific Information**, including:\n * Percentage of full-time students who graduate within 6 years,\n * Percentage of students who default on their student loans, and\n * Median borrowing rate for Federal loans\nBe sure and pay special attention to the median borrowing section, as this tells you 1) how much the school's students typically have to borrow, and 2) how much this median amount's monthly payments would be over 10 years time.\n### Do All College and Universities Provide the Financial Aid Shopping Sheet?\nNo. Currently, use of the Financial Aid Shopping sheet by colleges and universities is voluntary. If a college you're considering is not among the participants, ask why and consider instead other schools that are on board.\n### How Was the Financial Aid Shopping Sheet Developed?\nIn its development of the Financial Aid Shopping Sheet, the CFPB sought the input of those who know the challenges of the college application process best — students, parents, school guidance counselors, and college officials. Thousands of them shared their thoughts on the most important information to include, and how.\nIn 2012, every college and university in the nation was asked to adopt this tool. As of April 2015, over 2,900 institutions have voluntarily adopted the Shopping Sheet.\n### Where Can I See a Copy of the Financial Aid Shopping Sheet?\nEvery participating college or university will provide a Financial Aid Shopping Sheet containing information unique to you and their school. However, to get a feel for the format, which is standardized, here you can see the Financial Aid Shopping Sheet template. END

TITLE: Use the Financial Aid Shopping Sheet to Breakdown College Costs CONTENT: | | | | \n: . END

TITLE: Military Payday Loan Protection CONTENT: Payday Loan Protection for Military Personnel\n---------------------------------------------\n###### Written by: Kristy Welsh\nPayday lending among military personnel is rampant and many payday loan offices are set up as close to military bases as possible. With military personnel feeling the crunch even more than most consumers, this industry seems to be preying on service people. Some of the main reasons military personnel use payday loans is because they are on a fixed income with no other way to obtain additional income. This makes more and more military personnel victim to living paycheck to paycheck.\nPayday loans (and certain other financing) offered to service members and their dependents must include certain protections, under Federal law and a Department of Defense rule. For example, for payday loans offered after October 1, 2007, the military annual percentage rate cannot exceed 36 percent. Most fees and charges, with few exceptions, are included in the rate. Creditors also may not, for example, require use of a check or access to a bank account for the loan, mandatory arbitration, and unreasonable legal notices. Military consumers also must be given certain disclosures about the loan costs and your rights. Credit agreements that violate the protections are void. Creditors that offer payday loans may ask loan applicants to sign a statement about their military affiliation.\nEven with these protections, payday loans can be costly, especially if you roll-over the loan. You instead may be able to obtain financial assistance from military aid societies, such as the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, or Coast Guard Mutual Aid. You may be able to borrow from families or friends, or get an advance on your paycheck from your employer. If you still need credit, loans from a credit union, bank, or a small loan company may offer you lower rates and costs. They may have special offers for military applicants, and may help you start a savings account. A cash advance on your credit card may be possible, but it could be costly. Find out the terms for any credit before you sign. You may request free legal advice about a credit application from a service legal assistance office, or financial counseling from a consumer debt counselor, including about deferring your payments.\nMilitary consumers who are having financial difficulties can contact the Department of Defense, toll-free 24 hours a day, 7 days a week, at 1-800-342-9647, or at Militaryonesource.mil. Information on the Department of Defense rule, alternatives to payday loans, financial planning, and other guidance is available.\nSource: ftc.gov END

TITLE: Military Payday Loan Protection CONTENT: | | | | \n: . END

TITLE: Tips to Avoid Being Denied a Signature Loan CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAre you planning to take out a personal loan to meet a pressing need for funds? If the thought of having your loan request denied has you upset, here are some steps you can take steps to avoid having your signature loan application denied. You will never know exactly when you will be in need of a personal loan, so be sure to closely monitor your credit report and promptly correct any erroneous entry you find. It takes a while to get your credit report corrected and you may not have the time to do so when applying for a personal loan. Know your credit score and be aware of the acceptability of your credit to lenders.\n### Provide Accurate Information on Loan Application\nWhen you are applying for a signature loan, make sure to provide only correct and accurate information. Submit the required documents including verifiable proofs of residence, income, and employment. Should your credit report include unfavorable items related to circumstances of which you have no control, it may be a good idea to attach a short but direct self-explanatory letter. It is important for you to show your credit responsibility and offer evidence on your efforts to resolve the situation. The information you provide can be of big help to the account officer and loan underwriter in obtaining approval of your loan application.\n### Offer Collateral to Secure the Loan\nWhile the best type of loan to obtain is the unsecured personal loan, there are some cases when the lender would require some form of security or collateral to ensure repayment. If it is the only option available, you can offer any valuable asset that you legally own like vehicle or real estate. However, be aware of the risk this entails. You could lose your property in case you default on your loan or if you do not fully pay it back.\n### Get a Co-Signer\nAnother alternative to obtain approval for your personal loan is to present a co-signer, someone who will act as a co-borrower and assume the same legal responsibility of paying back the loan. When you ask a friend or relative to co-sign your loan documents, you are effectively putting him at financial risk if you fail to satisfactorily pay down your loan obligation. Whoever agrees to co-sign your loan trusts you very much and you must exert every effort to keep that trust. Therefore, give priority to religiously meet the monthly payments on that loan to avoid ruining your relationship with your co-signer.\n### If You Have Poor Credit, Consider a Bad Credit Loan\nIt is not advisable to file loan applications with different lenders at almost the same time but if your application was rejected by one lending institution, it may be a good idea to seek other potential creditors. Lenders use different methods in evaluating and approving loan requests. If your credit rating is less than good, you may want to apply for a \"bad credit\" loan with specialized lenders. However, do make sure that you are dealing with a legitimate financial institution and not some scammer who take advantage of people with the same circumstances as you have. Although this type of personal loan carries higher rate of interest, you can be assured of being granted credit. Treat this as an opportunity for you to do some credit repair work primarily by making prompt monthly payments.\nIt can be very frustrating to have your application for a personal loan be rejected. Try your best to obtain credit approval during your first filing. Be truthful in your personal loan application. Lying can and will only get you in trouble. An honest explanation of issues in your credit history can help the lender understand better your particular circumstances. Take your credit seriously and do keep a good credit standing so that \"poor credit\" will never again be an issue in your future loan applications.\nNeedless to say, you will have to give top priority to repaying your personal loan once you get one. Promptly paying your monthly amortizations will ensure you that when the time comes you will again be in need of financing, you won't have much difficulty in finding a lender. Much weight is given to borrowers who have shown ample credit responsibility. Securing your personal loan with collateral or co-signer makes it more imperative for you to make timely repayments. END

TITLE: Checklist Before You Co-Sign For a Loan CONTENT: Co-Signer’s Checklist - Answer Before Signing on the Dotted Line \n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nWhether you feel honored or cursed by a request to co-sign on a loan, the key to making the right decision is in asking the right questions of **yourself**. It should never come down to whether you **_should_**, but whether you **_want_** to in light of the facts.\nIn many of our articles regarding ways to rebuild your credit, establishing new credit may mean finding a person (with good credit) who will be willing to co-sign on a loan — and that person just may be you. If you are approached by someone who is trying to rebuild and re-establish their credit, and they ask you to co-sign on a loan, we have these five questions you need to ask yourself before you go down that road.\n**1) Do You Know the Person VERY Well?**\n----------------------------------------\nUnder just about any circumstance, the length of a relationship is less important than its quality.\nOn the one hand, you have family members you’ve known all your life and friendships that go back years. But considering how reluctant most of us are to discuss money matters, you may find you know relatively little about their financial history.\nOn the other hand, you may have a newer friendship with someone who you feel you’ve gotten to know very well indeed – someone who talks openly about past financial mistakes and, hopefully, how they’ve changed their ways.\nEither way, make it a point of sitting down with the person and covering the following points:\n* If you don’t know already, ask them what circumstances led them to have the financial difficulties that make it hard for them to get a loan on their own.\n* Ask to see financial documents (e.g., personal financial statement, bank statements, pay stubs).\n* Ask them to sign a statement of intent to refinance the loan in their own name as soon as possible (unless a co-signer release comes first).\n* Let them know you will be keeping monthly tabs on the loan to be sure payments are being made in full and on-time.\n**2) Are You Prepared to Take Full Responsibility For the Loan in the Event the Borrower Cannot Make the Payments?**\n--------------------------------------------------------------------------------------------------------------------\nShould the borrower be unable to make their payments, you will be held fully responsible for loan. This includes payments not made due to the borrower’s filing of bankruptcy or death.\n**3) In the Event of Default, Are You Prepared For the Co-Signed Account to Negatively Impact Your Credit Score?**\n------------------------------------------------------------------------------------------------------------------\nShould you be unable or unwilling to make good on payments, are you prepared for your credit score to take the hit? Note, this will include a negative listing on your credit reports, as well as demands from creditors and\/or collection agencies.\n**4) Do You Have an Exit Plan?**\n--------------------------------\nJust because you are co-signing on a loan today in no way binds you to it for the life of the loan. You can (and should) plan to request a co-signer release as soon as you are eligible to do so, which may be after a period of 2 years of timely payments.\nIn lieu of a co-signer release, the borrower may apply for refinancing of the loan. Make sure this is part of the plan from the beginning, recorded in writing and signed by both of you.\nIf it’s a credit card account, transferring the balance to a different card may also be a practical option.\n**5) Are You Doing it For the Right Reasons?**\n----------------------------------------------\nNever allow obligation or guilt to talk you into co-signing on a loan. In fact, if you are experiencing any negative feelings or doubt, it is probably best to pass on the co-signing request.\nIn fact, the only time to co-sign on a loan is if everything about it feels good and looks right. This includes the borrower’s ability and intention to repay the loan, of course. But also a genuine desire to help this person – a desire so strong and sure that you are willing to bet your own money and good credit on it. END

TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT: Payday Loans Cheaper than Checking Overdraft Fees or PrePaid Debit Cards?\n-------------------------------------------------------------------------\n###### Written by: Kristy Welsh\nWe've written articles and blog posts roiling against the payday loan industry. But, can payday loans can be cheaper than checking account fees or prepaid debit cards?\nAccording to a study by the consulting firm Bretton Woods Inc, U.S. banks recognize the fact that middle income customers present the greatest potential to harvest fees. The bulk of these fees are checking account overdraft fees, accounting for over 90 percent of all bank fees.\nThree quarters of banks automatically enroll consumers in their \"overdraft protection\" programs without formal permission, and more than half of banks manipulate the order in which checks are cleared to trigger multiple overdraft fees.\n**Fee Income**\n--------------\n* Bank and credit union income from non-sufficient funds (NSF) and overdraft program (ODP) fees exceed $34.7 billion.\n* NSF\/ODP fee income by state ranges from nearly $40 million in Wyoming to $3.2 billion in Texas.\n**NSF\/ODP Cost per Household**\n------------------------------\n* The national annual NSF cost per household with checking accounts is approximately $343.\n* Active households (defined as the 20.2 million households with bank or credit union accounts who write the majority of NSF items) pay $1,374 in annual NSF fees.\nPayday Loans vs Overdraft Fees\n------------------------------\nHere is a fact that might be hard to swallow — overdraft fees can be more expensive than payday loans. Here are the calculations:\n$100 advance incurs an $18 fee. \n$100 bounced check incurs a $35 overdraft fee.\nPretty easy to see which is cheaper. Now we are not encouraging the use of payday loans!! You can get into very serious trouble taking out a payday loan. Loan fees often make it impossible for them to pay off their loans with upcoming paychecks.\nPrePaid Card Fees vs Overdraft Fees\n-----------------------------------\nA better alternative to payday loans would be a prepaid debit card. These cards typically cost $70 to $80 a year ($10 upfront with a $5 monthly fee). Users direct-deposit their paychecks onto the cards (the money is FDIC-insured) and can do point-of-sale transactions and pay bills online. There are no overdraft fees; the purchase is declined if the card is empty.\nPrepaid cards may also help you if you have a black mark in ChexSystems, the \"credit score\" of checking accounts. Prepaid cards do not check you out via ChexSystems, so you cannot be turned down.\n**Please Note**: We only mentioned the alternatives to checking accounts to give you an idea of actual costs. If you absolutely can't manage your checking account, maybe you should consider one of them. Of course, if you already have a checking account, you can prevent overdraft fees by just keeping better track of your account balances.\nOverdraft Fees by Bank\n----------------------\nBank\nFees\nComments\nBank of America\n$25 each item. Beginning February 9, 2009, $35 each item\nCharges apply to a maximum 5 items per day or $175 per day\nUS Bank\n1 occasion $19.00 per item; 2-4 occasions $35.00 per item; 5 or more occasions $37.50 per item\nFees are subject to a daily maximum of 6 overdraft items paid and 6 overdraft items returned - a maximum total of 12 per day or $424 per day\nCitibank\n$34 per item\nNo daily limit\nWells Fargo\n$33 for every overdraft fee and $28 for every NSF fee\nThere are overdraft protection transfer\/advance service fees depending on which account is linked to the Checking Account for Overdraft Protection:\n* Savings accounts. A daily fee of $10 applies for all overdrafts that occur in a single day.\n* Credit Card. $10 if the total of Overdraft Protection advances for the day is less than $25.00. $12.50 if the total of Overdraft Protection advances for the day is $25.01 - $100.00. $15.00 if the total of Overdraft Protection advances for the day is $100.01 - $500.00. $20.00 if the total of Overdraft Protection advances for the day is more than $500.00.\nSunTrust\n$35 per item\nNo daily limit\n_(Table data is taken from web site survey conducted by Bretton Woods, Inc, on December 15, 2008)_\nWhat You Can Do to Avoid Overdraft Fees\n---------------------------------------\n* Keep track of how much money you have in your checking account by keeping your account register up-to-date. \n* Make sure there are extra funds in your checking account to cover any checks or fees you might have forgotten. Just an extra $50-$100 in your account at all times can save you hundreds of dollars in overdraft fees.\n* Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.\n* Don't forget about automatic bill payments you may have set up for utilities, insurance, or loan payments. END

TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT: | | | | \n: . END

TITLE: Borrowing Money From Your IRA or 401(k) CONTENT: Borrow From Your IRA or 401(k) With Caution\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\n401k's, IRAs and other pretax retirement savings accounts are now the most common ways to save for retirement, and millions of Americans pour money into them every year. In some cases, people commit too much money into their IRAs, without saving enough readily available cash for a rainy day. With economic conditions making it harder to borrow money these days, plenty of individuals are finding themselves searching for creative and sensible ways to finance life's wants, needs, and emergencies. Unfortunately, millions more take early withdrawals from these accounts due to hardship, loss of a job or other money woes. Is it a good idea to borrow money from your IRA or 401(k) account? Read on and get more information before you make this important decision.\nIs it a Good Idea to Borrow From Your IRA?\n------------------------------------------\nThe answers can be \"yes\" and \"no\" depending on various factors, but financial planners and tax professionals typically will offer virtually the same advice: If you can avoid it, don't tap into your retirement funds before your turn 59 years old, the age the U.S. government says is OK to begin withdrawals without incurring a 10 percent hit.\nAdditionally, it is important to understand the differences between borrowing and taking early distributions from an IRA versus a 401(k), as they are distinctly different animals. Both the IRA and the 401(k) are vehicles to save money for retirement, or occasionally for major purchases such as a child's college education or a down payment on a house. The principle difference between the two is that 401(k)s are retirement saving plans offered through your employer, and the IRA is a plan you set up on your own, with the help of a bank, or other financial agency. We'll look at each of these separately to help clarify these differences and hopefully help you understand the ramifications of borrowing, or taking early distributions, from either.\nInformation You Need Before Borrowing From an IRA\n-------------------------------------------------\n**What is an IRA?**  An IRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of accounts within the world of IRAs, depending on the financial goals and circumstances of each individual, though traditional and Roth IRAs are the most common types. An individual is allowed to contribute up to a maximum value established by the IRS each year into the account(s). In return, you are required to wait until you are at least 59 years old to begin distributions. The penalty for withdrawal prior to this is 10 percent, so it's definitely not a good idea to withdraw early.\nThere are a number of exceptions to the rule that penalties apply to distributions before age 59. You'll want to visit the IRS website to obtain detailed regulations for each situation, but a summary of these exceptions is as follows:\n* The portion of unreimbursed medical expenses that are more than 7.5 percent of adjusted gross income.\n* Distributions to buy, build, or rebuild a first home. ($10,000 lifetime maximum)\n* Distributions that are not more than the cost of medical insurance while unemployed.\n* Disability which is defined as not being able to engage in any substantial gainful activity.\n* Distributions in the form of an annuity, called substantially equal periodic payments.\n* Distributions that are not more than the qualified higher education expenses of the owner or their children or grandchildren.\n* Distribution due to an IRS levy of the plan.\n* Amounts distributed to beneficiaries of a deceased IRA owner.\nAll of the above information deals with distributions, or withdrawals, from your IRA that can be done without penalty (but you will still be responsible for any income tax due).\n**Can You Take Out a Short-Term Loan?**  If you're only looking for a short-term source of money, and you can repay those funds within a 60-day period, then it can be done. It's called an IRA rollover, and the rules that govern it apply to both traditional and Roth IRA accounts. It's a relatively simple way to get your hands on a considerable amount of money without having to fill out a bunch of forms or pay any additional loan fees or other expenses, and you don't have to pay interest on the loan during that 60-day period. During that 60-day period, you'll need to ensure that you are able to secure a loan (or other source of permanent financing) in order to make the repayment, if necessary; the IRS is very strict regarding the 60 day window. Additionally, you can move funds from one IRA account to another, but not more than once in a 12- month period.\nNevertheless, the law allows you a 60-day grace period in which to move the funds. And, as it turns out, you aren't required to actually move the funds to another account; they can be redeposited back to the original IRA account and still satisfy the rollover provisions. Another key benefit to it is important to understand and be aware of is that you can elect to take these funds without the mandatory 20 percent withholding. It's the best of all possible worlds, as long as you get the money back into another (or the same) IRA account within the required 60-day period.\nInformation You Need Before Borrowing Money From Your 401(k)\n------------------------------------------------------------\n**What is a 401(k)?**  A 401(k) plan is a type of employer-sponsored defined contribution retirement plan under section 401(k) of the Internal Revenue Code (26 U.S.C.401(k)). A 401(k) plan allows an employee to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or deferred, into his or her 401(k) account.\nUnlike IRAs, borrowing funds from a 401(k) can be arranged for periods longer than 60 days, but you are going to pay to do it. Not everyone's 401(k) plan will have a borrowing option, but the majority do. If it seems as though borrowing from your plan is your only option (and it should be your last option; not your first!), it is a relatively quick and easy type of loan to arrange, given that you are tapping into your own account, and therefore do not need to qualify for credit. Rules typically allow borrowing up to 50 percent of the vested account balance or $50,000, whichever is less. A consumer usually has a maximum of five years to repay the loan, unless the funds are earmarked for borrowing for a first home, in which case a longer payback will be allowable.\nAdvantages of borrowing from your 401(k):\n1. **It's easy.**  Loan approval may be just a phone call away.\n2. **No credit check.**  Given you have sufficient funds, the money is yours without worry.\n3. **Relatively low interest rate.**  Usually lower than other types of loans, plus the interest is tax-sheltered.\nDisadvantages of borrowing from your 401(k):\n1. **It's easy.**  Yes, it may be too easy, and affect your attitude and ability to save in the future.\n2. **If you quit or lose your job.**  The loan usually becomes payable in full, within 90 days maximum.\n3. **Tax obstacles if you default.**  A default turns the borrowed sum into a 401(k) distribution, thus ordinary federal and state income taxes would apply plus the 10 percent penalty for those under age 59.\n4. **You are losing investment interest.**  The net effect is that you have less money to invest and to earn interest. The money you borrow or take out of your retirement plan no longer appreciates in value from interest, dividends and\/or capital gains in conjunction with the rest of your investment portfolio.\n5. **It is not tax sheltered money anymore.**  Whether you repay the 401(k) loan out of your salary or from a bank account, those payments are all made back into the 401(k) with after-tax dollars.\nBut let's go right back to the big question: **Is it a good idea to tap into your retirement funds?** Unless you absolutely have no other recourse, the answer is **NO**. However, we hope that if you do find yourself needing to do so, the information above will help guide you to make an informed, wise decision. END

TITLE: Borrowing Money From Your IRA or 401(k) CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Use Federal Student Aid or FAFSA to Pay For College CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nCollege tuition grows by leaps-and-bounds every year. So if you or a loved one is college-bound, take advantage of every opportunity for securing financial aid, starting with FAFSA.\nWhat is FAFSA?\n--------------\nFAFSA stands for Free Application for Federal Student Aid. Financial aid for college students granted through this program may be in the form of grants, student loans or work-study programs.\n### How Much Aid Can I Expect to Receive From the FAFSA?\nThe Department of Education does not reveal how it determines the amount of aid for which you qualify nor, in turn, the amount of your \"expected family contribution.\" This formula is intentionally withheld so as to prevent people from \"gaming\" the system. In other words, the only thing within your control is answering every question in the application as honestly and thoroughly as possible.\n### What is the Best Strategy for Filling Out an FAFSA Application?\nBecause the formula for determining the amount of FAFSA aid is not revealed, the best strategy you have is that of being truthful and thorough. Of course, as with anything else as important as this, do not wait until the last minute. Rushing the process is no strategy at all. In fact, beware of questions that seem like ones you can breeze through with little thought. The easier they seem, the more important they may be.\n### Should Student Income be Included in the Family Income Section?\n**Absolutely not.** Unfortunately, this is a mistake many families make in the FAFSA application process. If you make this mistake, you are claiming the same income twice. Student income is student income and family income is everything else.\n### Are Tax Documents Required for the FAFSA?\nYes, you are required to submit federal income tax documents during the FAFSA filing process. For this reason, try to file your taxes early, and electronically. The application system is set up so that electronically-filed taxes can easily be merged into the FAFSA application, thus expediting the process.\n### Does it Help to File the FAFSA Early?\nThere is a limited amount of funds available via FAFSA, so conventional wisdom says the sooner you submit, the better. However, it is not worth rushing the process. What's more important than filing early is making sure you are filing it correctly. Double-check, triple-check, then quadruple-check your forms. The only exception to this advice is if you are expecting a big change in your financial situation — on the positive side of things — before the filing due date. That would mean having to include this information in your application, thus lowering the amount of financial aid for which you qualify.\n### What is the Deadline for Filing an FAFSA?\nEach state has a different filing deadline for the FAFSA. Beyond that, there are as many as 30 supplemental forms that colleges may request, any number of which could have different filing deadlines. So it is imperative you check with the schools you are considering, not only for the FAFSA filing deadline, but also to determine what other forms may be required, and by what date.\n### What if I Miss the FAFSA Filing Deadline?\nIf you think you may miss the deadline for filing the FAFSA, contact the school to see about getting an extension. Though it may be out of the question, it is certainly not unheard of and worth a try. That said, try to make this request before the deadline has passed. The school may respond more favorably in this regard.\n### How Do I File the FAFSA?\nIt is recommended that you file your FAFSA via the online application. However, you also have the option of downloading and printing a PDF version that you mail in for submission. A third, and least appealing option, is you may request that a hardcopy be sent to you via snail mail (i.e., the USPS). For details about all of these options, go to FAFSA.ed.gov.\n### Should I Accept an Offer of FAFSA as Soon as Possible?\nNo. When a school offers you FAFSA aid, the last thing you want to do is respond immediately. Why? Because then they will know that their school is probably your top pick and you will be ill-equipped to negotiate a higher offer. That's right! There is room for negotiation in the FAFSA. It's something colleges expect and accept. END

TITLE: Understand Different Types of Federal Student Loan CONTENT: Types of Student Loans — Federal Loans, Federal Family Education Loan\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nMany parents are finding it harder and harder to pay for their child's higher education. If you have children in high school who are just about ready to graduate, you are probably already thinking about how you are going to pay the tuition. Tuition rates seem to go up every year and no longer is it cheaper to have your child attend an in-state college. Applying for scholarships and grants is great, but not all students will get money this way. Applying for and taking out a student loan may be your only course of action.\nBuried deep in the bowels of the health care reform package that was passed in 2010, are provisions that were meant to shake up the student loan industry. In a nutshell, this reform is cutting out the middleman (banks and lending institutions) and all colleges must arrange for students to take their federal Stafford loans directly from the government. What does this mean to you?\n* Undergrads can continue to be eligible to borrow Stafford funds of at least $5,500 and up to $12,500.\n* Interest rates cannot exceed 6.8 percent a year.\n* Graduate students can continue to borrow their full cost of attendance through the Grad PLUS program at an interest rate of no more than 7.9 percent a year.\n* Starting with federal loans taken out in 2014, future grads will be able to sign up for an \"income-based repayment\" plan that will cap their monthly payments at 10 percent of their income.\n* The reform will also enable the federal government to raise more money to fund bigger Pell Grants.\nLike any other loan, student loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Parents may also borrow to pay education expenses for dependent undergraduate students. Maximum loan amounts increase with each year of completed study. There are three main types of federal loans:\n* **Federal Stafford Loans**\n 1. **Subsidized Federal Stafford Loan.** This loan is long-term and need-based, with a low-interest rate. The term \"subsidized\" means that the government will pay the interest on the loan while a student is in school or when the student requests a grace period or deferment.\n 2. **Unsubsidized Stafford Loan.** This loan is long-term, non-need-based, with a low-interest rate. This type of loan is best for students who don't qualify for other types of financial aid, or who still need more money in addition to other forms of financial aid. Almost all household incomes qualify, and \"unsubsidized\" means that the interest on the loan is the responsibility of the borrower.\n* **Federal Plus Loans.** These loans are available to parents whose children are attending college as full or half-time undergraduate students. They are awarded based on credit history and cost of attendance. The interest is low on this type of loan, but repayment usually begins within 60-90 days after full disbursement of the loan, or after the student graduates.\n* **Federal Perkins Loans.** Perkins loans are awarded to students based on extreme financial need, and usually have very low interest rates. The total funds available to be disbursed for these loans is limited, however, which means that the amount of the loan will likely be relatively low.\nYou must meet these requirements to receive aid from any Federal Student Financial Aid programs:\n* Be a U.S. citizen or eligible noncitizen of the United States with a valid Social Security Number;\n* Have a high school diploma or a General Education Development (GED) certificate or pass an approved \"ability to benefit\" test;\n* Enroll in an eligible program as a regular student seeking a degree or certificate; and\n* Register (or have registered) for Selective Service, if you are a male between the ages of 18 and 25.\nHow to Apply for a Student Loan\n-------------------------------\n**1.**  Complete the FAFSA (Free Application for Federal Student Aid). The FAFSA lists deadlines for federal and state aid. Check deadlines! Schools and states may have their own deadlines for aid.\nYou must fill out a new FAFSA for each year you plan to be enrolled in school. The best time to apply for aid is between January 1 and March 1, since most schools award aid on a first-come, first-served basis. About six weeks after you submit your FAFSA, you will receive a student aid report that will give you an opportunity to correct previously reported 'incorrect information' before the form goes from the Department of Education to your school.\nYou may get a FAFSA from:\n* a high school guidance office;\n* a college financial aid office;\n* a local public library;\n* the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243); or\n* you can apply online at: fafsa.ed.gov.\n**2.**  One to four weeks after you submit your FAFSA, you will receive a Student Aid Report (SAR). The report confirms the information reported on your application and will tell you your Expected Family Contribution (an amount you and your family are expected to contribute toward your education, although this amount may not exactly match the amount you and your family end up contributing).\n**3.**  Contact the school(s) you are interested in attending and talk with the financial aid administrator. They will review your SAR and prepare a letter outlining the amount of aid (from all sources) that their school will offer you.\n**4.**  Figure out what other forms you need to complete:\n* Some colleges have their own institutional forms, in addition to the FAFSA.\n* Some colleges require the CSS\/Financial Aid Profile to apply for non-federal aid. You can apply online and learn more at CollegeBoard.com.\n### When in Doubt, Fill Out the FAFSA Anyway\nEven if you don't think you're eligible for federal assistance, definitely fill out the form, because the FAFSA is used by many non-government aid programs in order to determine your eligibility for the scholarships, loans, and other programs they offer.\nHere are the items you need to help you fill out the application:\n* Social security card and driver's license.\n* W-2 Forms or other records of earned-income along with your federal income tax return (and your spouse's, if you are married). You'll need IRS Form 1040, 1040A, or 1040EZ and any 1099 forms you received.\n* Your parent's federal income tax return. (unless you are filing as independent)\n* Records of other untaxed income you received, including AFDC or ADC, child support, welfare benefits, social security benefits, TANF, veteran's benefits, and military or clergy allowances.\n* Current bank statements, mortgage information, and records of stocks, bonds, and other investments.\n* Medical and dental expenses for the past year that weren't covered by health insurance.\n* Your business or farm records, if applicable.\n* Your alien registration card (if you are not a U.S. citizen).\n### Expected Family Contribution\nThe EFC is a measure of your family's ability to pay for college based on student and parent income and asset information, your state of residence, household size, and number of household members in college. You can request a free copy of the EFC Formula by calling 1-800-4FED-AID and requesting the current SFA Handbook.\nSince you most likely don't have a copy of the above booklet in your hands, we will attempt here to briefly explain how the EFC is calculated. The EFC is the sum of the student contribution and the parent contribution. Some schools (mostly private) expect both natural parents to contribute to their children's educational expenses, regardless of a divorce or any court orders to the contrary. In cases of divorce where the custodial parent remarries, the financial information for both the custodial parent and the step-parent must be included on the FAFSA as well as any child support and\/or alimony received from the non-custodial parent.\nThe calculation of the expected student contribution is generally 35 percent of the student's assets and 50 percent of the student's prior year (including summer) earnings. (The federal calculation is 50 percent of the net earnings above $2,200 and 35 percent of the student's reported assets.)\nA few things to note about the needs assessment formula: (1) student assets are assessed more heavily than parent assets; (2) student income is assessed more heavily than parent income; and (3) in most cases the EFC will go down when the number of family members in school goes up.\nThe school you attend establishes a Cost of Attendance (COA). The school's COA will include tuition, fees, room and board, books and supplies, travel, and personal and incidental expenses. In many cases there is a standard fixed budget amount for some of these categories. But the budget amount for travel may vary depending on the student's home state. Likewise, room and board expenses may be reduced and travel expenses increased for commuter students.\nHow to Qualify as an Independent Student\n----------------------------------------\nIf you are classified as an independent student, only your (and your spouse's) income and assets are considered. To qualify as an independent student, you must meet at least **one** of the following criteria:\n* be at least 24 years old;\n* be an orphan;\n* have a dependent other than a spouse;\n* be a graduate or professional student;\n* be a veteran of the Armed Forces;\n* be married;\n* be a ward of the court.\nEligibility for Student Loans\n-----------------------------\nAs you can see from the definitions given above, the COA and the EFC may be different for every school. However, once these are calculated, every school uses the same formula to determine how much Federal financial aid to award to students:\nCOA - EFC = Financial Need\nIn order for you to receive need-based aid, your COA must be greater than your EFC.\nAs you probably have guessed, most schools only have money to help out the most needy of students. The financial aid office at your school will use the need-based resources they have available to try to meet your Financial Need.\nStudent Loan Default Information\n--------------------------------\nUnfortunately, many students find themselves in the terrible position of defaulting on their student loans. Because of this, student loan borrowers in default now have more options than ever before to repay their student loans.\n### When is a Loan Considered in Default?\nFor student loans authorized under Section 435(i)Title IV of the Higher Education Act, default occurs on a FFEL loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments or 330 days in the case of a loan repayable in less frequent installments. The change is effective for loans for which the first date of delinquency occurred on or after October 7, 1998. During the delinquency period, the lender must exercise \"due diligence\" in attempting to collect the loan; that is, the lender must make repeated efforts to locate and contact you about repayment. If the lender's efforts are unsuccessful, it will usually take steps to place the loan in default and turn the loan over to the guaranty agency in your state. Lenders may \"accelerate\" a defaulted loan, which means that the entire balance of the loan (principal and interest) becomes due in a single payment.\nIf the loan is placed in default, the loan is then turned over to the U.S. Department of Education (ED).\n### Which Type of Loan Do You Have?\n**Federal Family Education Loans (FFEL) -** These include Federal Stafford and Federal PLUS loans. When placed in default, these loans are first assigned to a guaranty agency (an organization that administers the FFEL Program for your state) for collection. Periodically, guaranty agencies assign loans to ED for collection.\n**Direct Loans -** Federal Stafford and PLUS loans are also offered through the William D. Ford Direct Loan Program. When placed in default, these loans are assigned to the ED's Debt Collection Service.\n**Federal Perkins Loans** - When placed in default, Perkins Loans may remain with the school or be assigned to ED for collection.\nIf you are not sure what type of loan you have, check your promissory note. If your loan is not one of the loans listed above, the information listed above does not apply to you.\n### Repaying Student Loans Held by the U.S. Department of Education\nIf you default on your student loan, the maturity date of each promissory note is accelerated making payment in full immediately due, and you are no longer eligible for any type of deferment or forbearance. However, all guaranty agencies and the ED will accept regular monthly payments that are both reasonable to the agency and affordable to you.\nIf your defaulted student loan is held by ED, you should establish a repayment arrangement with Debt Collection Service or the collection agency currently administering your account on behalf of ED. Failure to repay the loan may lead to several negative consequences for you:\n* The U.S. Treasury may withhold your payments toward repayment of your loan.\n* You may have to pay additional collection costs.\n* Also, you may be subject to Administrative Wage Garnishment, whereby the Department will require your employer to forward 10 to 15 percent of your disposable pay toward repayment of your loan.\n* Federal employees face the possibility of having 15 percent of their disposable pay offset by the Department toward repayment of their loan through the Federal Employee Salary Offset Program.\n* The Department may take legal action to force you to repay the loan.\n* Finally, credit bureaus may be notified, and your credit rating will suffer.\nIn addition, you may not receive any additional Title IV Federal student aid if you are in default in any Title IV student loan.\nStatute of Limitations on Student Loans\n---------------------------------------\nBy virtue of section 484A(a) of the Higher Education Act, statute of limitations of no kind now limits ED's or the guaranty agency's ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan. Regardless of the age of the debt, statutes of limitation are no longer valid defenses against repayment of a student loan.\n### Online Information\nTo obtain more information and to download student loan default forms, go to the website ed.gov.\n### Contact Sallie Mae\nFax: 800-848-1949\nP.O. Box 9500 \nWilkes Barre, PA 18773-9500 END

TITLE: Finding Scholarship Money for College and Financial Aid CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAs you may know, student loan debt now exceeds credit card debt for the first time in U.S. history. Though a number of factors play a part in this, key among them is the rising cost of tuition. So consider these 10 tips for finding FREE scholarship money for college, thus minimizing debt and the years-long stress of paying it off.\n### 1\\. Start Looking for Scholarships Your Junior Year\nMany high school students and their parents don't start looking for scholarship opportunities until their senior year of high school. However, this can be a disadvantage, as deadlines are looming and the pressure is on to not only find all the scholarship opportunities out there, but also to apply in a timely, effective manner. Instead, start looking before January 1 of your junior year. This will give you plenty of time to get a feel for the field and start a master list of scholarships you definitely want to apply for, including deadlines you don't want to miss. Of course, continue looking into your senior year, as you never know what new opportunities may arise.\n### 2\\. Consult With Your High School Guidance Counselor About Scholarship Opportunities\nOne of the most important roles fulfilled by a high school guidance counselor is help that extends beyond graduation — scholarship recommendations. After all, it's their job to not only know you well, but also to know of scholarships best-suited to your personal aptitudes and achievements.\n### 3\\. Consult With Your College Financial Aid Officer\nWhether you've already applied and\/or been accepted, do not hesitate to make an appointment to see the financial aid officer at the college(s) you have in mind. Ask about scholarship opportunities available to all students, as well as those that are program-specific.\n### 4\\. Apply to Colleges Early\nOften, colleges will only share all of their scholarship opportunities with students who have already been accepted into one of their programs. For this reason, do not wait to apply. Plus, if and when you apply and are accepted to multiple schools, availability of scholarship opportunities may prove a determining factor in where you go.\n### 5\\. Look Online for Scholarship Opportunities\nThere are a number of websites devoted to matching up students with scholarship money. Though you may browse these options on your own, be sure to avoid any site that asks you to pay a fee for this information. There are plenty of reputable sites that provide this service for free, such as Scholarships.com and FastWeb.com.\n### 6\\. Bury Your Nose in a Book\nThough the internet is an invaluable resource, sometimes it's nice to have a good-old-fashioned book at your fingertips. Some of the most reputable ones for scholarship listings include _The College Board Scholarship Handbook_; Kaplan Scholarship Books; and _The National Research Service's Guide to Private-Sector Scholarships, Fellowships, Grants, and Loans for the Undergraduate_.\n### 7\\. Check for Scholarships Offered by Local Businesses and Organizations (the closer to home the better)\nThe Chamber of Commerce is a great place to start, as if your employer and that of your parents. Often times these are relatively small scholarships — starting at $1,000 — but every dollar makes a difference, especially if you were to be awarded multiple scholarships of this size.\n### 8\\. Fill Out Scholarship Applications to the Best of Your Ability\nThis means reading instructions carefully, answering questions as fully and accurately as possible, and, of course, submitting your application before the deadline date. And if there is an essay portion, don't let that intimidate you. In most cases, the eloquence of your writing is less important than your sincerity and attention to detail.\n### 9\\. Don't Limit Your Scholarship Search to Your High School Years\nWhether you're already in college or haven't been in school for years, there are plenty of scholarship opportunities for you to explore. Talking to a college financial aid officer is a great place to start.\n### 10\\. Never Give Up Before You Try\nMany students and their parents assume only straight-A students or star athletes win scholarship money. Nothing could be further from the truth. There are many types of scholarships out there, each with their own specific list of qualifications, of which grades and athletic ability are not given top priority. END

TITLE: Payday Loans and Legal Loan Sharks CONTENT: Payday Loans - Check Cashing, Payday Advances\n---------------------------------------------\n###### Written by: Kristy Welsh\nBy Maureen Rooney\nOkay kids. It's quiz time!\nWhat is the most expensive legal form of credit available to you?\nIf your answer is a secured credit card at 24% APR, you are off by a mile. Try getting a payday loan.\nPayday loans, also known as deferred presentment, are currently available in 20 states plus the District of Columbia. They are short-term loans, generally 7 to 14 days, against a post-dated check. In Arizona, this loan against the paycheck you haven't yet earned carries a 15% fee. On the average payday loan of $300 for eight days, this 15% fee equates to an APR of 459%!\nCheck cashing and payday loan shops are popping up like mushrooms in plaza storefronts around my downtown neighborhood in Phoenix, Arizona. Signs announcing \"Cash King coming soon\" appear at 7th Street and McDowell next to the Starbucks and at Central and Thomas between the florist and the dry cleaner.\nWill people take an advance on next week's pay to buy a Mocha Frappuccino, I wonder? Will they borrow to retrieve their dry cleaning or to buy flowers for their girlfriend? As Cash King joins Cash One, CheckMate, EZLoans, Money Mart, --there are more than 250 shops in the state of Arizona with one-third in the City of Phoenix--I have to wonder. Is there a need for payday loans?\nAccording to the payday loan propaganda, everybody needs a payday loan. It's a quick, no hassle way for consumers to secure small, emergency loans, with little or no red tape. They claim payday loans serve an under-served market because neither consumer finance companies nor banks are interested in originating $100 to $500 non-secured loans.\nYes. A payday loan is quick and relatively hassle-free. You write a check to the payday loan people for the loan amount plus fees. (In Arizona the loan can be from $50 to $500 and the maximum fee is 15% of the loan amount.) You postdate the check to the date of your next payday. They give you cash for the loan amount. You agree to either bring in the cash in exchange for your check or allow them to automatically debit your bank account on your next pay day.\nThere are several problems with this arrangement.\n* First, the fee you pay for the use of this money is exorbitantly high. Think of it this way: by borrowing your pay in advance, you are settling for a 15% cut in pay.\n* Second, if you can't make it through to the next payday without a loan, and you're already spending next week's pay, how will you ever make it through next week without another loan? This can be a vicious, and very expensive, cycle.\n* Thirdly, it is considered fraud to knowingly write a bad check in many states (including Arizona). This means that on the off chance that you don't reclaim your check on the agreed date, they will deposit it anyway. \"Bad check\" laws in many states (including Arizona) allow them to take you to civil court for three times the amount of the check plus court fees.\n* And, if your check bounces, they will charge you an NSF fee of up to $30. Don't forget that our own bank will also charge you an NSF fee.\n* Can it get any more expensive? Unfortunately, it can. They can also prosecute you for fraud, if they are so inclined.\nHow can they legally lend money at such exorbitant interest rates? By simply not calling it \"interest.\" Payday loans charge a \"fee\" which makes them exempt from the standard usury laws that cap interest rates. In Arizona, the legalize reads like this: \"The fee charged by the licensee is not interest for purposes of any other law or rule of this state.\" Arizona (along with 19 other states and the District of Columbia) has given the green light to loan sharking.\nPayday loans take advantage of clients who lack financial savvy--who never stopped to think about the \"cost of money\" or who, quite simply, don't budget well enough to have $300 in the bank in the event of an unexpected expense.\nSpending money before you earn it, the enticement offered by payday loan companies, is diametrically opposed to anything you will learn in any financial planning book or class. The commonsense rule is this--earn money, pay yourself first (by putting a percentage into savings or some other investment vehicle), then spend. The initial pain of budgeting will quickly be replaced by the good feeling you'll get from reaching a goal.\nAlthough budgeting and saving defers spending a little, it costs much less in the long run to buy needed items with cash from your savings. Instead of paying 15% (at an APR of 459%) for the privilege of purchasing something today, you earn interest on the savings until you are ready to buy. In effect, you will have more money to spend by the time you get around to spending in the future.\nContrary to what they say, payday loan shops are not in business to help you through a one-time financial emergency. The payday loan propagandists claim that this unexpected expense is their reason for existence, but, in reality, the regular customer is their bread and butter.\nOne Web site touting the advantages of opening a loan shop claims an annual return of 805% for investors! Their best estimates of the average returns possible for one payday loan store:\nMonthly volume for 1 store: 575 checks \nAverage loan: $300 \nAverage fee: $15 per $100 advanced \nTotal monthly loan volume: $172,500 ($300 X 575) \nTotal monthly fee income of one payday loan store: $25,875 ($172,500 X 15%)\nWho's fooling whom? If the payday loan shop operator is winning that big on their investment, it's because the rest of us are losing just as big.\nHeed some sage advice, paraphrased from the Consumer Federation of America:\n* Make a realistic budget and live it. You will have savings so you will never need to borrow small sums to meet emergency expenses. (By not paying the fee on a typical $300 payday loan for seven paydays, you will have your own $300 savings for a financial emergency.)\n* Shop for the lowest cost credit available from cash advances on credit cards, small loans from your credit union or a small loan company, an advance on your pay from your employer, and loans from friends or family.\n* If you need money to pay a utility bill, ask the utility company for an extension. Look into the late fee they charge. Is it less than the 15% fee from the payday loan folks?\n* Consider getting overdraft protection on your checking account. My credit union charges nothing for this service if used only once a month. If your bank has an overdraft fee, find out what it costs. If it is less costly than the payday loan, use it.\n* If you must use payday loans, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday. Otherwise, you will become the payday loan industry's dream client--returning every payday for a loan.\n* If you have on-going financial problems, seek help. Budgeting and debt management counseling is available from credit unions and local non-profit agencies.\nIn closing, I am asking you all to help rid my neighborhood and yours of payday loan shops and all their lovely neon. Use your credit options wisely. Budget and build your savings. Don't use these expensive services. If no one ever steps inside their doors, they'll go away. END

TITLE: Payday Loans and Legal Loan Sharks CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Utility Companies Using Payday Loans CONTENT: Paying Utilities with Payday Loans\n----------------------------------\n###### Written by: Kristy Welsh\nA disturbing trend appears to be growing amongst the providers of our utilities. Across the country, as well as locally in the Phoenix area, many utility companies have closed the doors on a significant number of their on-site customer service centers. As a purported cost-savings measure, they are replacing these local service centers with chain-style retail outlets whose primary business typically includes check-cashing and payday loans. This forces consumers who need to make a payment in person to be exposed to and utilize the services of these predatory lending facilities.\n### Why is This a Disturbing Trend?\nUnfortunately many of the consumers that are so strapped for cash that they have to pay their utilities late (or at the last minute) are also primary targets for the predatory lending products that are sold at these retail outlets. High-cost check-cashing services and short-term, high-interest payday loans are typically the brunt of the business at these retail stores; a business that seems to prey on lower income consumers who may be under financial stress. Given these circumstances, requiring these people to go to these locations to pay their utility bills exposes them to these \"expensive products\" and may result in them utilizing a service they otherwise may not have considered using, such as a payday loan. But of course, the advantage to the check-cashing storefronts is obvious as their potential customer base is increased with no advertising whatsoever!\nWidespread use of check-cashing outlets didn't attract much attention until lately, presumably due to the fact that only recently have these businesses branched into high-interest payday loans. In California, about 2500 retail locations are licensed to make payday loans. According to the California Department of Corporations (who licenses payday lenders in the state), 952,000 payday loans were made in the state last year, with an estimated value of approximately $2.5 billion dollars.\nA nonprofit research organization entitled the \"National Consumer Law Center\" issued a report in June that identified 650 payday loan companies that accept payments for 21 utility companies across the United States. The report stated the these payday lenders were pushing their other products on the consumers who pay bills in person; who typically were \"low-income, minority, female, elderly\". It stated that they are \"prime targets for payday lenders\", and it urged utilities to sever those arrangements.\nThe utility companies will justify the shift to these storefront centers as a \"convenience to the consumer\". Don't buy it; they are also saving money, but do you think it is being passed on to the consumer? When is the last time the utility company lowered rates? We all know the answer to that one.\nArizona statutes regarding payday lending are available on-line at . For other states, look for your state legislature online under \"deferred presentment.\" For kicks, read what the payday loan industry has to say at: www.paydayandpaycheckloans.com\/\nIn Phoenix, Financial Fitness training is available at no cost from NHS Phoenix, Inc. Call 602-258-1659. END

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TITLE: Find the Best RV Loans and Motor Home Loans CONTENT: How to Finance a Recreational Vehicle\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe cost of gas and the economy have a direct effect on the sales of RVs. Why? Because a recreational vehicle is just that, recreational. And if you don't have the money to pay for expensive gas, you won't want to buy an RV. Even so, sales are still going on, even when the market bottom has dropped out.\nRecreational vehicles \"are at the swing end of discretionary spending because no one needs an RV, and certainly no one needs a new RV,\" said Ron Muhlenkamp, whose Muhlenkamp & Co. fund manages about $1.8 billion including shares of Winnebago, the biggest motor-home maker, and Thor, the maker of Airstream trailers. \nRegardless of your reasons for wanting to buy a motor home, you will probably need to take out a loan to help with your purchase. Even a used motor home can cost as much as $100,000. There are many different motor home loan options out there and in order to choose the best one, you should weigh the advantages and disadvantages of each one very well.\n### What are My Loan Choices?\nPurchasing your very own motor home can be an exciting experience, but this should not stop you from being as careful as possible when choosing from the many available motor home loans today. Just as with selecting a mortgage loan, you should also be very well-informed before making a decision on which motor home loan you want to use. For instance, you should know what the current interest rates are, so you can be sure you are being offered a good deal or not.\n### Motor Home and RV Loans\nIf you want the best deal on a motor home loan, it is recommended that you go to a professional motor home lending company. These companies are likely to know more about motor home loan options than other regular lending companies. It is easy to find these specialized lending companies if you make an online search. The loan programs can probably be explained to you at the RV dealership. Another good source of a loan is a credit union.\n### Home Equity Loans\nAnother way of gathering funds for your motor home is to apply for a home equity loan. With this loan, you will essentially be borrowing money equal to the amount of equity that you have built on your home.\n### The Application Process for Motor Home Loans\nApplying for any type of loan may take some time, especially if you do not take time to do the proper preparations. The best way to speed up the approval of your motor home loan application is to have your loans pre-approved. If this has been taken care of, you will just have to worry about choosing a good deal.\n### In Summary\nSelecting the best loan need not be difficult — all you have to do is make a side-by-side comparison of the interest rates and the APRs of each package. You should keep in mind that the loans with the lowest rates are not always the best choice because these rates might increase as the months go by. On the other hand, some loans may come with higher interest, but these could be fixed rates, which will not change even after many years.\nAs you can see, it is important to consider all factors when making your choice. If you are able to make the right decision, then you can enjoy your new motor home all the more. END

TITLE: Information on Student Loans and College Degrees CONTENT: Student Loan and College Guide\n------------------------------\n###### Written by: Kristy Welsh\n### Article Series to Help You Navigate Through Student Loans and Help Choose a High Paying College Degree\n_Last Updated: October 3, 2017_\nMany college graduates find themselves deep in debt after they graduate. Never in our history has student loan debt surpassed credit card debt and it is not getting any better. Faced with a tough job market, lower starting salaries, and high unemployment, many of these recent grads will be paying off their college education for years and years and years.\nOur new article series, targeting student loans and college degrees to pursue, provides information to up and coming college students and their parents and hopefully will help you navigate through the maze of loans and grants that are available to college students.\n* Types of Student Loans — It is stressful enough applying to a college but the big hurdle is finding the money to pay for tuition, room and board, and books. Get all the information you need on types of student loans available and how to apply for a student loan.\n* Scholarship Money for College — One way to help pay for a college eduation is a scholarship. Here are 10 ways you can find FREE scholarship money for college, and minimizing debt and the years-long stress of paying it off.\n* Federal Student Aid (FAFSA) — FAFSA is the largest federal student loan program offering grants, student loans, and work-study programs to help students pay for college. Get the facts.\n* Avoid Student Loan Debt — Student loan debt has surpassed credit card debt in the U.S. and it is growning every year. There are ways to minimize student loan debt.\n* Avoid Student Loan Default — After graduating from college, you now face a large student loan bill that needs to be paid on each and every month. Poor job market and low incomes have seen student loan defaults skyrocket. Learn how to avoid loan default.\n* Public Servant Student Loan Forgiveness Program — Wipe out your student loan debt by volunteering or working as a public servant. Learn how this may work for you.\nCollege Degrees to Pursue and Help Finding a Job\n------------------------------------------------\n* Best and Worst College Degrees by Salary — A higher starting salary equals paying off your student loan faster. See which college degrees have the highest and lowest salaries.\n* College Degrees Worth the Student Loan Debt — Thinking about getting a college degree or maybe a master's degree? Make sure the degree you pursue will actually be worth the money you are going to spend. END

TITLE: Information on Student Loans and College Degrees CONTENT: | | | | \n: . END

TITLE: Title Loans Turn Into a Costly Cycle CONTENT: Information on Title Loans — High Interest and Costly Title Loans\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 5, 2017_\nWhen you're in a pinch with nowhere to turn for help, title loans can seem a saving grace. Unfortunately, the nature of the beast is one that can prove your worst nightmare. Before you, or anyone you care about, takes out a title loan, get the facts and reconsider.\nWhat is a Title Loan?\n---------------------\nA title loan allows you to borrow money against the equity in your car. The lender, in turn, holds onto your title until you pay back the loan in full.\n### How Long Do I Have to Pay Back a Title Loan?\nThough most title loans come with contracts requiring you to pay the loan back within 30 days, it is remarkably easy to renew your contract. In other words, you could have an indefinite period of time to back the loan (i.e, an indefinite period of time for the lender to continue making money off you).\nHow is a Title Loan Different From a PayDay Loan?\n-------------------------------------------------\nA title loan is secured, whereas a payday loan is not. The only thing a lender holds against you with a payday loan is the post-dated check they will cash on the due date (unless you pay with cash prior to or on the due date). While that is disturbing enough, with a title loan, if you fail to pay on time, they can do more than cash a check; they can repossess your car. Many payday lenders in states where payday loans have been outlawed are now focusing their efforts on title loans instead. Unfortunately, this sends mixed messages to consumers, implying that payday loans are bad, but title loans are okay. On the contrary, they can be equally costly and predatory.\n### How Much May Be Borrowed Through a Title Loan?\nThe amount of your title loan is based on a percentage of the value of your car — a percentage that varies by lender.\n### What Are the Interest Rates on Title Loans?\nThough it varies by states, title loans can have annual interest rates of up to 300 percent.\n### Are There Any Other Fees Charged For Title Loans?\nIn addition to interest charges, title loans may include fees for initiating the loan, extending the loan, or late payments.\n### Can a Title Loan Be Renewed?\nYes, as mentioned above, title loans may be renewed indefinitely. While this may seem an attractive option in the moment, when you are struggling to pay back the loan, the long-term consequences of title loan renewal are quite costly. If you get caught up in this cycle of renewal, paying only the minimum required for extension, you could spend hundreds of dollars on interest fees in just a few months time with none of it ever going toward paying down the balance.\n### Can I Pay Off a Title Loan Early?\nThough you may be able to pay back your title loan early, you will probably still be required to pay the full interest rate for the full length of your contract.\n### How Much Will I Really End Up Paying For a Title Loan?\nBeyond the principle balance that must be paid back, your title loan will include interest charges and may include other fees. So, how much you end up paying depends on the amount of your loan, the interest rates and fees charged by your particular lender, and how long you have the loan. If you pay the loan off right away, and do not renew (or go back for more), your charges may be minimal in the grand scheme of thing. However, if you extend the loan, you could end up paying many times more for the loan than the original loan amount. For example, CreditSlips.org shares the story of a man who extended a title loan 40 times, paying over $10,000 in interest on a title loan of just $1,500.\n### Can a Title Loan Lender Really Repossess My Car?\nYes, they can repossess your car if and when you are late with your payment. It's estimated that as great as 10 percent of title loan borrowers lose their cars to repossession, an especially disturbing repercussion considering that 15 percent of borrowers take out the loan on their only means of transportation to and from work. END

TITLE: Pros and Cons of Student Loan Consolidation CONTENT: Pros and Cons of Consolidating Your Student Loans\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nWith student loan debt standing at over $1 trillion (yes, you read that right), just about anyone you talk to has taken out more than one student loan to pay for their college education. Having all of these different loans, different payments, different payment due dates to contend with, it is no wonder some of these payments get lost in the shuffle and wind up being late. Not only does this affect your credit score, but it also increases your overall interest payments.\nOne way to manage all of these loans is to consolidate them into one bill. Not only could this simplify your life, but it could reduce your overall monthly payment. But it is a good idea? Will combining them or refinancing them be beneficial for you? Below we have put together the pros and cons of consolidating private and federal student loans.\nTypes of Student Loans\n----------------------\nOur advice is going to differ between Private Loans and Federal Loans. Private student loans cannot, in general, be consolidated WITH federal student loans. The low interest rates on federal consolidated loans are not available to private education loans. On a private loan, you are really \"refinancing\" the loan instead of consolidating it.\nAdvantages to Consolidating Federal Student Loans\n-------------------------------------------------\nThe biggest advantage to consolidation is to simplify your repayments. If you have a student loan for each school year (freshman, sophomore, junior, senior years), putting these all together into one lump sum will have you making one payment each month — instead of four. This makes bill paying at the end of the month much easier and you are less apt to forget to pay on one of these loans.\nAnother advantage to consolidation is decreasing your monthly payment. When you consolidate, you restart the length of your loan, which means you can repay your debt over a longer time. This will reduce your monthly minimum payment, but it will extend the length of time your are paying on this loan. If you are struggling with meeting all of your monthly payments, having a lower one will surely help your budget.\nDisadvantages to Consolidating Your Federal Student Loans\n---------------------------------------------------------\nJust as with the advantages of consolidating your federal student loans, it is important to understand the potential disadvantages to consolidation. For example, you will have an option of taking longer to repay your loans, so a consolidation loan could cost you more over time since interest keeps adding up until you are done paying.\nAlso, if you consolidate your loans while you are still in school, you will lose your grace period. Therefore, it is important you weigh the pros and cons of consolidation carefully and to make sure consolidating your loans is in your best interest and worth the effort.\nConsolidating Private Student Loans\n-----------------------------------\nA private student loan is very different from a federal student loan. These types of loans are either categorized as a home equity loan or a private education loan. The interest charged on these loans is based on your credit score and the market place. So, if you are thinking of putting all of your private student loans together, you are basically refinancing your loans and will have to go through the entire loan process all over again.\nPrivate education loans tend to have interest rates that are in the same ballpark as home equity loans. If your private education loan has a variable interest rate, you might consider using a fixed rate home equity loan to pay off the private education loan, effectively locking in the interest rate.\nYou should not consolidate your federal student loans together with your private education loans. They should be consolidated separately, as the federal consolidation loans offer superior benefits and lower interest rates for consolidating federal student loans.\nStudent loan consolidation is a great opportunity to organize your financial life and allow you to focus on debt elimination. You must be disciplined and focused. Student loan consolidation typically makes good sense for most people. Research your options and dedicate yourself to paying off your debt, and you will be on your way to a healthy financial future.\nHere is more information regarding student loans. END

TITLE: How to Avoid Student Loan Debt CONTENT: Student Loan Debt — Don't Be Fooled Into Thinking This is Good Debt\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nRecent statistics released show the average student loan debt for the class of 2016 was $37,172 — up 6 percent from the previous year. The average cost of tuition and fees for the 2020-2021 school year was $37,200 at private collages, $9,650 for state residents at public colleges, and $27,437 for out-of-state residents attending public universities. Soaring student loan debt is not really a great way to start off a seemingly bright college graduate future. A lot of families sign whatever kind of loan is put in front of them just so they can get their child a college education, without thinking about how in the world they are going to pay it back. But don't worry, a student loan is \"good debt\" — right? Not really.\nIf you are a parent reading this article, you need to seriously think about how you are going to pay off this student loan which could amount to $10,000, $50,000 or even as much as $100,000 by the time your child graduates. If you are a student thinking about taking out a student loan, are you prepared to be paying on this loan when you are well into your 40's? Below are some suggestions which may help both parties and give you some ideas on how you can forgo or minimize the amount of debt you will incur in student loans.\nAttend Community College First\n------------------------------\nOk, so all your friends are heading off to an out-of-state college this fall and you don't want to be left out. You also don't want to keep living with your parents knowing all of your friends will be living on some campus, enjoying the freedom of dorm life. But think of all the money you will be able to save living at home and attending a local college for the first two years. Take all of those basic requirements at half the cost and then transfer to a larger university to complete your degree. This can save upwards of $50,000 in tuition and room and board. You will be further ahead of your classmates when you graduate from college.\n### Plan Ahead Before Taking Out a Loan\nPrior to taking out a student loan, think about how long you are going to be paying on this loan and how much it is going to cost you per month in payments. Let's say you graduate from that prestigious college at the age of 21 with a student loan hanging over your head for $100,000. You can count on paying at least $1,000 a month toward that loan. If your starting salary at your new job is $30,000 a year, once you make your student loan payment, that does not leave you a lot left for living expenses. On top of that, think about all the interest you are paying — you are paying back a lot more than you borrowed — lots more!\nBesides the amount you will be paying back each month, think about how long you are going to be making these payments. You could be almost into your 40s before you have paid off your student loan. That is a long time to be making monthly payments on a student loan.\n### Supplement Your Education\nYou don't have to be in college — or even physically on campus — to earn college credits. You can take College Level Examination Program (CLEP) tests, such as AP exams, and community college classes while you are still in high school. By doing this, you might be able to complete your undergraduate degree in three years saving a whole year of tuition. You can also take online courses and exams from many colleges. This may lower your per-credit cost and reduce your tuition dramatically.\nAs stated before, living at home while you are going to college, instead of on campus, can save a lot of money. Room and board can typically add up to about half of your yearly tuition so why pay for this expense years down the road when you can live at home for free. Living at home may also facilitate getting a part-time job to supplement your college expenses. Earning a few hundred dollars a week and putting that into a savings account, can help pay off that student loan after you graduate.\n### Make Smart Choices\nImagine you are holding two college acceptance letters, and one of them if offering you a full ride. Which one do you choose? This may go without saying but let's hope you go to the school offering the full ride. Maybe it is not the college you were hoping to attend, but, in the long run will it really matter? You can graduate debt-free or graduate $100,000 in debt, which scenario sounds better - that is a no brainer!\nProbably one of the most important things to consider prior to heading off to college is, \"What kind of degree am I going to pursue\" and \"Will there be jobs for me once I do graduate from college?\" Be prepared prior to entering college so you won't waste time and money taking classes you won't need or pursuing a degree where there are not going to be many jobs available once you get out. Of course nothing is for sure, but you can at least do some research on a vocation so you can be reasonably sure there are going to be jobs available. No sense spending four years in college and getting $75,000 in debt to find out there is no demand in the market for your type of degree. It is always a good idea to talk to a job counselor or read a few articles relating to job trends.\nIn this tight economy, you have to make sure you make smart choices, understand what you are getting into when taking out a student loan, and plan ahead by doing some research on the job market before you head off to undergraduate or graduate school. A little due diligence will pay off in spades. END

TITLE: How to Avoid Student Loan Debt CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Frequently Asked Questions About Small Business Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 17, 2017_\nIf you're planning to start a business or if you are an owner of a small business, you know how difficult it is to raise working capital for day to day expenses and expansion. In order to grow your business, you need to expand, and to expand, you need money. It is a vicious cycle — but if it works out, you can reap the rewards of a thriving company.\nThere are a lot of options available to business owners but knowing what are the good ones and which are the bad ones, can make or break your business. Below are some questions we have received from our readers — hopefully these will help you in your decision making for your business.\nWhat is an SBA Loan?\n--------------------\nSBA loans are government-backed loans available through commercial lenders who follow SBA guidelines. SBA works with lenders to provide a partial guarantee for loans, reducing lenders’ risk, increasing small business lending, and helping expand small business economic activity. The SBA does not make direct loans to small businesses, except for the disaster loan program, to repair physical and economic damage caused by a declared disaster. \n### What are the main reasons small businesses seek financing?\nSmall businesses borrow for four principal reasons: 1) starting a business, 2) purchasing inventory, 3) expanding the business, and 4) strengthening the firm. Firms choose different means of financing depending on the intended purpose. \n### How much can I borrow?\nSBA does not set a minimum loan amount. The average loan extended to U.S. businesses in 2016 ranged from $671,000 to $850,000, according to data from the Federal Reserve. Depending on the type of loan and the lender, averages may range from $13,000 to $1.2 million.\n### What are the fees and interest rates associated with an SBA loan?\nLoans guaranteed by the SBA have fees bases on the loan's maturity and the dollar amount guaranteed, not the total loan amount. On loans under $150,000 made after October 1, 2013, the fees will be set at zero percent. On any loan greater than $150,000 with a maturity of one year of shorter, the fee is 0.25 percent. On loan with maturities of more than one year, the normal fee is 3 percent on loans $150,000 to $700,000 and 3.5 percent on loans of more than $700,000. There is also an additional fee of 0.25 percent on any guaranteed portion of more than $1 million.\nThe actual interest rate for a 7(a) loan guaranteed by the SBA is negotiated between the applicant and lender and subject to the SBA maximums. The maximum rate is a base rate and an allowable spread.\n### Aren't SBA guaranteed small business loans only for businesses that are not creditworthy by traditional banking standards?\nOn the contrary, SBA financing will not be extended to any business that does not demonstrate the ability to repay debts. The longer terms allowed with SBA financing can enable your company easier debt qualification based on lower payments.\n### What else do I need to know?\n* Debt to worth ratio should generally not exceed 4:1\n* Sufficient cash flow to meet proposed debt service\n* Personal guarantees are required\n* Life and hazard insurance is required\n* Current appraisals are required on real estate collateral\n### What are some common myths about SBA financing?\n* It does not take 6 to 9 months to get funded. On average, it takes 45 to 60 days to process an SBA loan from submission to final funding.\n* You do not have to be turned down by a bank prior to applying for an SBA loan.\n### Can SBA loans be used to refinance existing business debt?\nYes, in most cases.\n### Can SBA financing be used for construction?\nYes, as long as the business will occupy at least 67 percent of the new building. The construction loan will convert to a fully amortized loan at the end of the construction. If an existing building is financed or refinanced, your business must occupy at least 51 percent of the facility.\n### Are there any special 7(a) loans available?\nSBA offers several special purpose 7(a) loans to aid businesses that have been impacted by NAFTA, provide financial assistance to Employee Stock Ownership Plans, and help implement pollution controls. Here is a list of the special programs available. For more detailed information, go to SBA.gov.\n* CAPLines — This program is designed to help small businesses meet their short-term and cyclical working capital needs.\n* SBA Export Loan Program — SBA is helping small business exporters by providing a number of loans designed to help develop or expand export activities.\n* Advantage Loans — SBA guarantees three types of 7(a) business loans; Small\/Rural Lender Advantage Loan, Community Advantage Loan, and Small Loan Advantage. END

TITLE: Best and Worst Starting Salaries by College Degree CONTENT: Best and Worst Bachelor's Degrees by Starting Salary\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nThere’s no getting around it — college education is expensive. A four-year degree at a public university costs, on average, $37,343, while an education at a private school will set you back $121,930. While statistics show that a college degree will undoubtedly open doors and increase your earning potential, you need to choose your degree carefully to ensure you’re making a wise investment.\nEver wonder which college degree can get you the best salary the minute they hand you the diploma? The answer lies within the realms of engineering and technology. College graduates in the class of 2016 starting salaries were low- to mid-$60,000s for engineers and the mid-$40,000s for humanities majors.\nWhile many factors contribute to job satisfaction, key among them is monetary compensation. This is especially true if you spent four years of your time, and money, in college studying for your chosen field. Hopefully, the work is rewarding in and of itself, but if you struggle to maintain a comfortable standard of living for you and your family, you may regret the trade-off. So if you or someone you know is weighing college degree options, the following list of the best and worst degrees by starting salary may be worth a browse.\n_Information from the graduating class of 2016 as reported by Forbes Magazine_\n**TOP 10 BACHELOR'S DEGREES**\n**STARTING SALARY**\nChemical Engineering\n$  63,389\nComputer Engineering\n$  63,313\nElectrical Engineering\n$  61,173\nSoftware Design\n$  60,104\nMechanical Engineering\n$  59,681\nComputer Programming\n$  58,995\nComputer Science\n$  56,974\nCivil Engineering\n$  55,879\nManagement Information Systems\n$  51,690\nConstruction\n$  49,672\n**WORST BACHELOR'S DEGREES**\n**STARTING SALARY**\nHistory\n$38,361\nEnglish\n$38,303\nPsychology\n$38,079\nSpecial Education\n$38,002\nElementary Education\n$37,803\nAnthropology\/Sociology\n$37,672\nSocial Work\n$37,115\nPre-K Education\n$35,626\nKindergarten Education\n$35,626\nIs the degree of your dreams among the worst by salary? By all means, do not allow that to dissuade you. The truth is, the more passionate you are about a subject, the more adept you will probably be at its mastery. And the better you are at what you do, the greater your opportunities for advancements in all sorts of unforeseen, lucrative directions. On the flip side, if you're up in the air about your field of focus, why not consider a degree program that is the most lucrative among them? END

TITLE: Best and Worst Starting Salaries by College Degree CONTENT: | | | | \n: . END

TITLE: Automating Your Student Loan Payment Right For You? CONTENT: Automate Student Loan Payments: Direct Debit vs Recurring Bill Pay\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 17, 2017_\nMost of us forget to pay a bill now and then, but that’s not a risk worth taking with student loans that are already so stressful and expensive. Fortunately, you can eliminate this risk by automating your student loan payments. You have two choices. Here they are, including the pros and cons of each.\nUsing Direct Debit to Make Student Loan Payments\n------------------------------------------------\nWhen you set up direct debit, you are authorizing your student loan servicer to automatically withdraw your payment from your bank account every month.\n### _Pros_\n1) Most student loan providers offer a .25 percent interest rate reduction when you make payments via direct debit every month.\n2) You’ll never forget to make a payment. You can pretty much set it and forget it.\n3) You can choose a recurring payment amount that is more than your minimum. Even as little as an extra $5 or $10 a month can add up over the life of the loan.\n### **_Cons_**\n1) It’s hard to cancel. You will likely find it requires a written request several business days prior to the scheduled transaction. Check with your student loan servicer for the policy specific to them.\n2) If you want to pay a _different_ amount every month — sending in extra when you can — you’ll find that you can’t adjust the direct debit with your servicer. Your regular debit will come out as scheduled and whatever extra you want to pay will have to be sent separately.\n3) While you won’t forget to make the payment, you could forget to make sure the money is in there to cover it.\n**Using Recurring Bill Pay**\n----------------------------\nWhen you set up recurring bill pay, you do so through your bank, authorizing them to make your payment to your student loan servicer every month.\n### **_Pros_**\n1) You’ll never forget to make a payment. As with direct debit, you can set it and forget it.\n2) Recurring bill pay gives you more control over your payments.\nThe last thing you want to do is cancel a student loan payment, but if you find yourself in a tight spot, it’s nice to know you have the option to make a change last minute. For instance, Wells Fargo gives you up until 7 pm on the Send On date to cancel or change it. Check with your bank for the cancellation policy specific to them.\nOn the flip side, you may realize last minute that you have a little _extra_ to put toward your loan one month, in which case you can go in and increase the payment accordingly.\n### **_Cons_**\n1)  You won’t qualify for the .25 percent interest rate reduction available if you set up direct debit auto pay through your student loan servicer. So you could be missing out on hundreds of dollars in savings over the life of your loan.\n2)  As with the direct debit option, while you won’t forget to make the payment, you could forget to make sure the money is in there to cover it.\n### **How to Set It Up**\nTo set up direct debit, go to your student loan servicer’s website and look for the direct debit option. If you don’t see it, give them a call. If, however, you decide to go with the bill pay option through your bank, you should be able to set that up through your online account.\n### **Bottom Line**\nIt’s hard to see the benefits of bill pay outweighing the money-saving .25 percent interest rate reduction of auto pay. Again, it could cut your student loan debt down by hundreds of dollars over the life of the loan. END

TITLE: Master's College Degrees Worth the Student Loan Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nLet's get the obvious out of the way first — any bachelor's degree is better than none. A high school graduates earns 67 percent of what a college graduate will earn. The tougher question, and the one that will be addressed here, is it worth going on to pursue an advanced degree? Though conventional wisdom holds that a master's degree will equate to a higher salary, that is not always the case.\nOn average, those with master's degrees earn more than $72,000 a year — about $20,000 more than an undergrad but it is degree specific. For instance, if you go back to school for a master's in meteorology, it will only earn you an average of 1 percent more than you were making with your undergrad degree. That said, a master's degree in health and medical preparatory programs could garner you a 190 percent salary increase after graduation.\nIf you are considering going back to school for your master's, peruse the following list of top-earning degrees and see if anything catches your eye. They are listed in order of return on the investment, including a percentage of how much more you can expect your salary to increase after graduation. This is information based on an analysis of census data collected by Georgetown University's Center on Education and the Workforce, as outlined by Loans.org.\nMaster's Degrees Worth the Debt\n-------------------------------\n1. Health and Medical Preparatory Programs, 190 percent salary increase\n2. Social Sciences, 134 percent salary increase\n3. Zoology, 123 percent salary increase\n4. Molecular Biology, 115 percent salary increase\n5. Public Policy, 107 percent salary increase\n6. Biology, 106 percent salary increase\n7. Biochemical Sciences, 101 percent salary increase\n8. Chemistry, 93 percent salary increase\n9. Pre-Law, 81 percent salary increase\n10. Physiology, 78 percent salary increase\nMaster's Degrees NOT Worth the Debt\n-----------------------------------\n1. Meteorology, 1 percent salary increase\n2. Studio Arts, 3 percent salary increase\n3. Petroleum Engineering, 7 percent salary increase\n4. Oceanography, 11 percent salary increase\n5. Mass Media, 11 percent salary increase\n6. Advertising\/Public Relations, 12 percent salary increase\n7. Pharmaceutical Sciences, 13 percent salary increase\n8. Forestry, 15 percent salary increase\n9. Computer Engineering, 16 percent salary increase\n10. Miscellaneous Education, 16 percent salary increase\nIf you do not see your area of interest listed above, here are some steps you can take to determine if the degree you have in mind is worth the debt:\n* Find out how much graduates with this particular degree usually make their first year.\n* Find out how much it will cost you to complete the degree program.\n* To complete the degree program, determine if you only need to borrow as much money as you will earn your first year after graduation. This is key, as most student loan payment programs last 10 years. This means you will need to set aside 10 percent of your yearly income to pay off the loans. If you borrow more, you could run into trouble, as it will be tough to put more than 10 percent of your income toward paying off student loan debt. This is precisely what, unfortunately, leads to so many graduates going into student loan default.\nAll of that said, if you have your heart set on a graduate degree program that has a very little return on your investment, go for it. Just find a way to fund tuition in other ways, be it scholarships or grants. But do your best to follow the 10 percent rule — again, only take out as much student loan debt as you can pay off within 10 years, i.e., the amount you expect to earn your first year after graduation. END

TITLE: Master's College Degrees Worth the Student Loan Debt CONTENT: | | | | \n: . END

TITLE: Can You Qualify for a Small Business Loan? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe U.S. Small Business Administration, SBA, offers varied programs to small business owners. These programs provide financial assistance and help owners obtain the working capital they need to start or expand their business. The SBA does not make direct loans to small businesses, rather, it sets the guidelines for loans, which are then made by its lending partners. The SBA guarantees these loans will be repaid, thus eliminating some of the risk to the lending partners.\nThe following are the guidelines set by the SBA to determine whether your business is considered an eligible small business.\nEligible Businesses\n-------------------\n* Operate for profit.\n* Be small, as defined by SBA.\n* Be engaged in business in the United States or its possessions.\n* Have reasonable invested equity.\n* Use alternative financial resources before seeking financial assistance.\n* Be able to demonstrate a need for the loan proceeds.\n* Use the funds for a sound business purpose.\n* Not be delinquent on any existing debt obligations to the U.S. government.\nIneligible Businesses\n---------------------\nThe following list of business types are not eligible for assistance because of the activities they conduct:\n* Financial businesses primarily engaged in the business of lending, such as banks, finance companies, payday lenders, some leasing companies and factors (pawn shops, although engaged in lending, may qualify in some circumstances).\n* Businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except when the property is leased to the business at zero profit for the property's owners).\n* Life insurance companies.\n* Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify).\n* Businesses engaged in pyramid sale distribution plans, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants.\n* Businesses deriving more than one-third of gross annual revenue from legal gambling activities.\n* Businesses engaged in any illegal activity.\n* Private clubs and businesses that limit the number of memberships for reasons other than capacity.\n* Government-owned entities.\n* Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting.\n* Consumer and marketing cooperatives (producer cooperatives are eligible).\n* Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans.\n* Businesses in which the lender or CDC, or any of its associates owns an equity interest.\n* Businesses that present live performances of an indecent sexual nature or derive directly or indirectly more 2.5 percent of gross revenue through the sale of products or services, or the presentation of any depictions or displays, of an indecent sexual nature.\n* Businesses primarily engaged in political or lobbying activities.\n* Speculative businesses (such as oil exploration).\nSBA Loan Terms\n--------------\nSBA loan terms are calculated based on your use of proceeds. The following list shows what loan terms are available based on your use of proceeds.\n* **New building purchase:** 25 years\n* **Building improvements:** 20 years\n* **Mortgage refinance:** 20 years\n* **Machinery and equipment purchase:** 10 years\n* **Leasehold improvements:** 10 years\n* **Other debt refinance:** 7years\n* **Inventory:** 7 years\n* **Working capital:** 7 years END

TITLE: Can You Qualify for a Small Business Loan? CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Can You Qualify for a Small Business Loan? CONTENT: | | | | \n: . END

TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT: What is a Business & Industry Loan and Does Your Business Qualify?\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nIf your business is located in a rural community, you may qualify for a special type of loan. The U.S. Department of Agriculture (USDA) maintains a Business and Industry (B&I) Guaranteed Loan Program. The USDA provides guarantees of up to 80 percent of a loan made by a commercial lender.\nThe Rural Business-Cooperative Service (RBS) is one of three agencies within USDA responsible for administering various economic development programs to rural communities in the United States. Because these three agencies are closely aligned, they are commonly referred to as the USDA Rural Development, Business & Cooperative Programs.\nThe mission of the RBS is \"to enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace.\"\nThey meet these goals by:\n* Investing financial resources and providing technical assistance to businesses and cooperatives located in rural communities.\n* Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity.\nIn addition to supporting rural business, economic, and cooperative development, the Agency has become increasingly involved in renewable energy and value-added agriculture since the enactment of the 2002 Farm Bill. Here are the guidelines set by the Rural Business Cooperative Service (RBS) to determine whether your business is considered an eligible small business for a Business & Industry (B & I) loan.\nHow is Rural Area Determined?\n-----------------------------\nNormally, projects seeking a B&I guaranteed loan need to be located in eligible rural areas, which include all areas other than cities or towns larger than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns.\nImpact on Local Jobs\n--------------------\nRBS begins determining eligibility for a B & I loan based on your loan request’s impact on jobs in the rural community. RBS priorities are, in order from highest to lowest, as follows:\n* Saving existing jobs.\n* Expanding existing businesses.\n* New plant location or new business start-up.\n* Business which will generate little or no permanent employment other than the entrepreneur.\nQuality of Loan\n---------------\nRBS looks for quality loans that will support a stable employment source. The factors that RBS reviews to determine loan quality include:\n* **Equity:**  10 to 25 percent down may be required at the loan closing, depending upon the risk factors presented by your request.\n* **Profitability:**  Your application should show historic cash flow adequate to service the debt.\n* **Management:**  Management must demonstrate experience in the industry and competence in production, marketing, finance and personnel management.\n* **Collateral:**  Collateral must be sufficient to secure the loan.\n* **Guarantees:**  Personal guarantees from owners, major stockholders and\/or partners are required.\nUse of Proceeds from a B&I Loan\n-------------------------------\nThis loan can be used for:\n* Working Capital\n* Machinery and Equipment\n* Buildings and Real Estate\n* Certain Types of Debt Refinancing\nYour B & I loan request will be considered _**ineligible**_ if you intend to use proceeds to:\n* Relocate jobs or expand a business where an excess of supply of the goods or services already exists.\n* Pay any distribution to an owner or beneficiary who will continue in the business.\n* Transfer the ownership of a business unless the transfer is necessary to keep the business from closing, or if it will expand job opportunities.\n* Pay off creditor in excess of value of collateral.\n* Assist government employees and military personnel owning 20 percent or more of the business.\n* Finance any illegal business activity.\n* Finance any line of credit.\n* Finance agricultural production with the exception of specialized crops such as forestry, commercial nurseries, aquaculture, hydroponics, mushrooms or commercial custom feed lots.\nBusiness Type\n-------------\nIf your business falls within one of the following categories, it is _**ineligible**_ for a B & I loan.\n* Lending and investment institution or insurance company.\n* Charitable or educational institution.\n* Church, church-sponsored or fraternal organization.\n* Community antenna television service or facility.\n* Business establishment when more than 10 percent of annual gross revenue comes from legalized gambling activities, such as a racetrack.\n* Golf course.\nLike all SBA loans, you will need to go to through your local bank or financial institution to apply for a B&I loan. If you have any questions, go to the SBA.gov website. END

TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT: | | | | \n: . END

TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAs recently as the early 1990s, most students did not take out college loans. Today, nearly 71 percent of all college students borrow money to pay for college. The typical student borrower graduating with the class of 2016 left college with an average debt of $37,172. And, according to a recent study, recent college graduates are defaulting on federal student loans at the highest rate in nearly two decades — one in seven borrowers defaulting within the first three years.\nIf you are buried deep in student loan debt, you are not alone, and there are things you can do to avoid defaulting on your loans. Try any one of the tips outlined below before you throw in the towel and default on one or more of your student loans. Your credit score will thank you.\nOptions to Avoid Defaulting on Your Student Loans\n-------------------------------------------------\nBefore you call it quits, here are some ways you can avoid defaulting on your loans:\n* **Pay the loan in full.** Call and get payoff amounts on your loans and pay them off in full, if you can.\n* **Discuss a repayment plan with your lender**. You have several ways to repay your loan by making monthly installment payments on your account.\n * Standard Repayment — fixed monthly payments of at least $50 with up to 10 years to repay in full.\n * Graduated Repayment — monthly payments will begin low and increase gradually over time.\n * Extended Repayment — lowers monthly payments over a longer period of time and has a predictable payment schedule.\n * Income Contingent and Income-Sensitive Repayment — monthly payments are calculated as a percentage of your income.\n* **Consolidate your student loans**\n* **Rehabilitate your student loans**\n* **Determine if you qualify for payment relief**\nWhat is Student Loan Consolidation?\n-----------------------------------\nStudent loan consolidation pays off the outstanding combined balances for one or more federal student loans and creates a new single loan with a fixed interest rate. One lender holds the loan and you make one monthly payment. The repayment terms depend on the amount consolidated, the type of payment plan you choose, and the length of the loan term. The following loans can be consolidated:\n* Stafford Loans\n* PLUS Loans\n* Perkins Loans\n* Health Professions Student Loans (HPSL)\n* Health Education Assistance Loans (HEAL)\n* Nursing Student Loans (NSLP)\n* National Direct Student Loans (NDSL)\n* SLS Loan (formerly ALAS Loans)\n* Federal Insured Student Loan (FISL)\nHow to Rehabilitate a Loan\n--------------------------\nUnder the loan rehabilitation program, you and your loan holder (or the Department of Education if you have a defaulted Direct Loan) agree on a reasonable and affordable payment plan for nine payments over a ten-month period. In most cases, you sign a rehabilitation agreement specifying payments and responsibilities. A loan is rehabilitated only after you have voluntarily made the agreed-upon payments on-time and the loan has been purchased by a lender. Outstanding collection costs may be added to the principal amount. Loan rehabilitation offers the following:\n* The nine voluntary on-time payments you make while rehabilitating your loans will be subtracted from the maximum repayment term of your loan.\n* Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.\n* After the loan has been rehabilitated, you regain the balance of all benefits of the Title IV loan program, including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.\n* Repayment plans available to other borrowers with the same loan type may be available to you, depending on your qualifying status.\nPlease keep in mind:\n* The amount of your monthly payment after rehabilitation may be more than the amount you paid while you were rehabilitating your loans.\n* Any _interest_ outstanding at the time your loan is rehabilitated will be added to your current outstanding principal balance, increasing the total amount you owe. Collection costs may also be added to your principal balance, increasing the total amount you owe.\n* Delinquencies reported before the loan(s) defaulted will not be removed from your credit report.\nMake sure that you understand the differences in loan rehabilitation for the different loan programs. For questions on rehabilitation of Perkins loan, please contact your school directly to establish an agreement. For FFEL loans, at the completion of the schedule of rehabilitation payments, a participating lender must agree to purchase the defaulted loan and assume _servicing_ of your loan. You must continue making payments during this time.\n### How to Determine if You Qualify for Payment Relief\nIf you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. And it's important to take action before you incur late fees or your credit is affected.\n### Types of Payment Relief\n* A deferment is a temporary suspension of loan payments for specific situations such as returning to school, unemployment, disability, or military service. You have a right to defer repayment for certain defined periods.\n* Forbearance is a temporary postponement or reduction of payments for a period of time, as you and the lender or holder of your loan may agree, because you are experiencing financial difficulty.\n* Graduated payment plans provide short-term relief through low, interest-only payments followed by standard principal and interest payments.\n* Income-sensitive or income-contingent payment plans offer payment relief with payments that are a specific percentage of your gross monthly income.\n### Federal Interest Subsidies\nThese options will provide you with payment relief and help you maintain a good credit rating. If you qualify and apply for federal interest subsidies on your loan during deferments, you loan balance will not increase during the deferment period because the government will be making interest payments on your behalf. However, if you do not qualify for federal interest subsidies on your deferment, or if your loan is in forbearance, your loan balance will increase by the amount of unpaid accrued interest.\n### Problems with Obtaining Payment Relief\nIt is import to act quickly if you find your student loan payments hard to handle. If you default, or fail to make your loan payments as scheduled, you risk very serious consequences. Your school, the financial institution that made or owns your loans, your state education loan guarantor, and the federal government can all take action to recover the money you owe. They may notify national credit bureaus of your default, negatively affecting your credit record. You could find it difficult to borrow money to buy a car or a house, and you would be ineligible for additional federal student aid if you decided to return to school. The financial institution that owns your loans may ask your employer to deduct loan payments from your paycheck (garnish your wages), and your state and federal income tax refunds could be withheld (tax offset) and applied toward the amount you owe. Also, delayed payment and collection activities could increase the cost of your loan. END

TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT: | | | | \n: . END

TITLE: Student Loan Public Service Forgiveness Program CONTENT: Do You Qualify for the Public Service Loan Forgiveness Program?\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe College Cost Reduction and Access Act (CCRAA) created a loan forgiveness program for borrowers who hold public service jobs. Borrowers who meet the requirements outlined in the law may be eligible to have a portion of their student loan debt forgiven. The CCRAA, which went into effect in October 2007, provides for the cancellation of the remaining balance due on eligible student loans after the borrower has made 120 monthly payments on those loans, while employed in specific public service fields.\nPresident George W. Bush signed the CCRAA into law on September 27, 2007. The legislation was enacted to make college more affordable for low- and moderate-income students by phasing in a number of positive changes. The benefits added by the CCRAA take many forms, including increased grants, lower interest rates, and loan forgiveness for public servants. The Act was generally effective October 1, 2007; however, specific provisions of the Act have later effective dates.\n### The Provisions of the Act\n**Effective Dates —** Borrowers must have made 120 monthly payments after October 1, 2007 in the Ford Federal Direct Loan Program. Effectively, this means that loan balance cancellations will not be granted until October 2017 at the earliest.\n**Eligible Loans —** Any non-defaulted loan made under the Direct Loan Program, which includes the following types of loans:\n* Federal Direct Stafford\/Ford Loans (Direct Subsidized Loans)\n* Federal Direct Unsubsidized Stafford\/Ford Loans (Direct Unsubsidized Loans)\n* Federal Direct PLUS Loans (Direct PLUS Loans); for parents and graduate or professional students\n* Federal Direct Consolidation Loans (Direct Consolidation Loans)\n**NOTE:**  Borrowers may have to meet additional eligibility requirements to consolidate these loans into a Direct Consolidation Loan. To determine the type of loan you have, you can access the National Student Loan Data System.\n**Eligibility of Other Federal Loans —** Although loan cancellation is only available for loans made and repaid under the Direct Loan Program, borrowers with loans made under other federal student loan programs may be eligible if they consolidate those loans into the Direct Loan Program. Loans that are eligible for consolidation into the Direct Loan Program include:\n* Federal Family Education Loans (FFEL) (includes Stafford, PLUS, and Consolidation Loans).\n* Federal Perkins Loans.\n* Certain Health Professions and Nursing Loans.\n**Eligibility Requirements\/Repayment Plans —** To be eligible to have remaining balances cancelled, the borrower must not be in default on the loan(s) and must have made 120 monthly payments on the eligible loan(s) beginning after October 1, 2007. (Earlier payments do not count toward meeting this requirement). Payments must have been made under any one or a combination of the following Direct Loan Program repayment plans:\n* Standard Repayment Plan with a 10-year repayment period.\n* Income Contingent Repayment (ICR) Plan.\n* Income Based Repayment IBR Plan.\n* Other Direct Loan repayment plans, but only payments that are at least equal to the amount that would be required under the 10 year Standard Repayment Plan may be counted toward the required 120 payments.\n**Eligibility Requirements for Employment in a Public Service Job —** To be eligible to have remaining balances cancelled, the borrower must:\n* Have been employed in a public service job during the (entire) period in which the borrower made each of the 120 monthly payments.\n* Must be employed in a public service job at the time of loan forgiveness.\n### What Constitutes an \"Eligible\" Public Service Job?\nThe act defines eligible public service jobs as those full-time jobs in these fields:\n* Government\n* Military service\n* Public health\n* Public library sciences\n* Public education\n* Public child care\n* Public service for the elderly\n* Public service for individuals with disabilities\n* Public interest law services\n* Emergency management\n* Public safety\n* Law enforcement\n* School based library sciences\/other school based services\n* Certain tax-exempt organizations\n* Faculty teaching in high-needs areas (TBD by the Secretary)\n* Faculty member at a tribal college or university (full-time)\n### Additional FAQs  \n**If my loans are held by a private loan company, I won't qualify for this program — right?**\nThis is true, however, beginning July 8, 2008, the law allows students with Federal student loans with private companies to consolidate or reconsolidate into the Direct Loan Program in order to qualify for the public service loan forgiveness.\n**I do not qualify for either income contingent or income based repayment. Will I qualify for this program?**\nBorrowers who remain in the standard repayment plan will have no need for forgiveness after 10 years of payments because their loan will have been paid in full. Payments made under extended repayment plans will be ineligible if they are less than the amount calculated under the standard 10 year repayment plan. The law only allows public servants with salaries low enough to qualify for income based or income contingent payment plans to be eligible for forgiveness of debt (over and above the amount that can be paid off in 10 years).\nIn summary, only borrowers with a high debt-to-income ratio or consistently low income will qualify for loan forgiveness under this program. It is not designed to bail out those with the means to pay their debt responsibly. And, with all new legislation, there may certainly be tweaks and further clarification provided as time goes on. For more information, you can visit the National Association of Financial Aid Administrators or any of the sources linked within this article. END

TITLE: A-Paper Loan or Prime Mortgage Loans for Excellent Credit CONTENT: Could You Qualify for An \"A\" Paper or Prime Loan?\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nPlease Note: We are not a bank nor do we give out loans. Each bank has its own set of rules to decide whether or not to give a person a loan. The criteria given below is meant to be used as a guideline only.\nAn \"A paper loan\" is another term for a prime loan. This type of loan is for a person with a credit score of 680 or higher, can fully documents his\/her income and assets, their debt to income ratio does not exceed 35 percent, has two months of mortgage payments in reserves after closing, and can injects at least 20 percent equity into the transaction.\n**\"A\" Credit**\nThis means:\n* You have not been late on a mortgage or rent payment in the last two years.\n* You have not been late on a car payment in the last two years.\n* You have not been more than 30 days late on a credit card payment more than twice in the last two years.\n* You have had no collections (other than a small medical collection) or any judgments in the last two years.\n* Your credit score is good to excellent, perhaps 680 or better.\n* An A paper borrower must have at least two months mortgage payments in \"liquid reserves.\" This can be in a checking, savings, investment, or even retirement accounts at any financial institution.\nSee more details on deciding if you have A credit.\n**Sufficient Income**\nThis means:\n* Your total mortgage payments per month are equal to 30 percent or less of your gross monthly income.\n* Your total payments per month (not including insurance, utilities, food) are equal to or less than 36 to 41 percent of your gross monthly income.\n* You must be able to prove your income. Examples: tax returns, bank statements, pay stubs.\n* In order to count your full income, you must have been employed in the same line for work for the last two years.\n**Stability**\nAlthough credit and income are the biggest two deciding factors on whether or not to give someone a loan, stability plays a part. Good stability means:\n* You have been in the same line of work and\/or job for 2 or more years.\n* You have lived in the same house or apartment for more than 2 years.\n**Down Payment**\nYou cannot buy a house without making a down payment. Typically you need to have saved up an amount equal to 3.5 percent of the price of the home at the minimum — and this is for an FHA loan to qualify. Some loan programs even allow the down payment and\/or closing costs to be paid for through a monetary gift from a relative, such as the FHA program.\nThe decision whether or not to give you a loan is not dependent on any one of the above factors alone, but on all three. For instance, if you have excellent credit, but no verifiable income, no one will give you an A type loan on a new home (and perhaps no loan period, in today's market). You may still be able to get a loan with less than A credit, but the application process will be harder and the interest rate and points will probably be higher. More at Brokers vs. Bankers. END

TITLE: A-Paper Loan or Prime Mortgage Loans for Excellent Credit CONTENT: | | | | \n: . END

TITLE: What is a Loan Modification and Can it Help You? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nWhether it's called a loan modification, mortgage modification, restructuring, or workout plan, it's when a borrower who is facing great financial hardship, having difficulty making their mortgage payments and is facing foreclosure, works with their lender to change the terms of their mortgage loan to make it affordable. The workout plan varies by lender, but changes could include temporary or permanent changes to the mortgage rate, term and monthly payment of the loan, the past due amount could be rolled into the loan, and the new balance re-amortized.\nHome Affordable Modification Program\n------------------------------------\nIn January of 2009, President Obama unveiled the \"Making Home Affordable Program\" which is comprised of two programs: one for loan modifications and one for refinancing loans. The loan modification program is called the Home Affordable Modification Program (HAMP). It is designed to reduce mortgage payments homeowners pay per month to sustainable levels. The refinance plan is called the Home Affordable Refinance Program (HARP).\nWho is Eligible for a HAMP Loan?\n--------------------------------\nTo qualify, you must:\n* Originated your mortgage before Jan. 1, 2009.\n* Your property has not been condemned.\n* You owe up to $729,750 on your primary residence or one-to-four unit rental property.\n* You are struggling to make your mortgage payments due to financial hardship.\n* You are delinquent or in danger of falling behind on your mortgage.\nWho is Not Eligible for a HAMP Loan?\n------------------------------------\nThose of you who bought homes for investment purposes. All homes must be owner\/occupied. Also, if you cannot afford the home due to job loss or a complete inability to pay, you will not be eligible. Also, mortgages with amounts above the conforming loan limits would not be eligible.\nAre There Other Loan Modification Programs Out There?\n-----------------------------------------------------\nHAMP, HAFA (for short sales) & 2MP (2nd mortgages) are not the only programs available to homeowners, so just because you get rejected for these programs does not mean that you cannot get a modification. There may be some internal programs that are private modifications made available by your lender and these are offered on a case by case basis. So what are these mysterious \"internal\" programs? They are privately negotiated loan modifications where terms are approved or disapproved by the lender on a case by case basis. The lender could range from Freddie Mac, Fannie Mae to some other major lender - you just need to know who servicees your loan and that is the entity you will be negotiating with.\nIf you going to work directly with your lender on a loan modification, make sure you do your homework first and that you know what you are talking about. Arrange your finances and have a effective hardship letter ready. The better prepared you are, they better chances you will have at negotiating the loan modification you want.\nWill a Loan Modification Help You?\n----------------------------------\nIf you are facing a foreclosure on your home, then yes, a loan modification will help you. As with anything, the more research you do on the subject and the better educated you are about the entire loan modification process, the better your results will be in the long run. There are government as well as private programs available and you will need to investigation the pros and cons of each to see which is a good fit for your financial situation. The internet is loaded with information on the subject but it doesn't hurt to seek professional advise as well.\nThe bottom line is, if a loan modification keeps you from losing your house, all of the effort you put into your research and preparation will be worth it. There is light at the end of the tunnel — just getting there can be hard work. END

TITLE: What is a Loan Modification and Can it Help You? CONTENT: | | | | \n: . END

TITLE: Understanding What is a Reverse Mortgage CONTENT: What is a Reverse Mortgage and is it Right For You?\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you are an older American living on a fixed income, a reverse mortgage might be a good idea if you need additional retirement income, to pay for medical expenses, or to finance a much needed home improvement. In essence, a reverse mortgage allows people who are 62 years of age or older, house-rich yet cash-poor, to cash in on the equity in their homes without having to sell the home or take on a second mortgage.\nHow Does a Reverse Mortgage Work?\n---------------------------------\nIn a conventional mortgage, you make regular monthly payments to a mortgage lender for the principal and interest owed on your house. In a reverse mortgage, you actually receive money back from the lender based on the principal that is already in your house. This money does not need to be repaid for as long as you remain in your home and use it as your primary residence. Instead, the loan will be repaid upon your death or sale of your home, or if you no longer use your home as your primary residence.\nWho Qualifies for a Reverse Mortgage?\n-------------------------------------\nIn order to qualify for a reverse mortgage, you must be 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. Your home must be a single family home or a 1 to 4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.\nTypes of Reverse Mortgages\n--------------------------\nThere are two basic types of reverse mortgages: single-purpose and federally-insured reverse mortgages.\n* **Single purpose reverse mortgages** are offered by state and local government agencies (and some non-profit organizations). The costs of obtaining a single-purpose loan are quite low; however, the loan itself is not available in all states and regions. Single-purpose loans must be used for a legitimate purpose (specified by the lender), like payment of property taxes. The loan is also, as its name states, for a single purpose only.\n* **Federally-insured reverse mortgages**, also known as Home Equity Conversion Mortgages (HECMs), are backed by the U.S. Department of Housing and Urban Development (HUD). Proprietary reverse mortgages are private loans sponsored by individual corporations. Both of these loan types are more expensive but are also more widely available. They have no income or medical requirements and can be used for any and multiple purposes.\n HECMs require that you first meet with a house counselor who is government-approved. This counselor will explain the costs and benefits of the loan as well as other alternatives (such as other government or even nonprofit programs). The total amount of money that you can borrow will be calculated based on your age, the appraised value of your home, your home's location, and current interest rates. You will also decide how the HECM is paid out to you- whether as a series of fixed cash advances, as a line of credit, or both.\n The downside to obtaining an HECM is that, because it is government sponsored and regulated, oftentimes the cost of obtaining one will be the same no matter where you go. All HECM lenders must follow HUD rules, so the payout percentage, fees, and interest rates may be preset to certain values. Therefore, if you live in a higher-valued home or have a good amount of home equity, it may be better to shop around for a private company for a reverse mortgage loan.\nThings to Look for When Thinking About Getting a Reverse Mortgage\n-----------------------------------------------------------------\n1. **Find Out What Index the Loan Uses.** Reverse mortgages have typically based their interest rates on the Constant Maturity Treasury, or CMT, index, which is based on treasury bonds. However, other loans base their interest rates on other indices, such as the London Interbank Offered Rate, or LIBOR index. Using the LIBOR index often allows for lower interest rates; however, there can be higher initial fees for securing a lower interest loan. If you are able to secure a fixed rate low interest loan, that higher initial fee may be worth it.\n2. **What are the Fees?** Earlier this year, the Federal Housing Administration began reducing their fees by about 40 percent and other banks have followed suit. Prior to this, the fees for securing a loan could be as high as 5 percent of the home's value. Fees can be paid upfront or financed into the loan and are usually dependent on the amount borrowed. If you are seeking just a lump-sum payout and have a home with high equity, some lenders are willing to reduce fees or even eliminate them altogether.\n3. **Check Out the Types of Fees Being Charged.** There are many types of fees, as well as costs, associated with obtaining a reverse mortgage loan. Lenders can charge an origination fee for obtaining the loan and there are the usual closing costs to consider. Sometimes a lender will also charge a servicing fee for the duration of the loan. Many lenders are now waiving some of their fees - make sure to ask.\n4. **Be Aware of Pitfalls.** Keep in mind that getting a reverse mortgage means that you will owe more money over time. While this may seem obvious, what some people forget is that, as the principal on a house diminishes, interest increases. This interest is added to the total amount owed and is not tax-deductible. Thus, a reverse mortgage could potentially use up all the equity in your home and even leave you with a higher debt than you started with when first purchasing your home. Fortunately, most reverse mortgages contain a non-recourse clause which prevents you or your heirs from owing more than the value of the home when the loan is finally repaid.\n5. **Cancellation Clause.** Finally, a reverse mortgage, regardless of reason, can be canceled up to three business days after the signing of the documents without penalty. You must cancel in writing, and the lender is obligated to return all the money you paid for the actual financing.\nIn conclusion, a reverse mortgage is a good way for senior citizens to obtain cash without losing their homes. However, it pays to be aware of the fees and interest rates associated with these loans. Be sure to consider all your options first before starting a reverse mortgage loan. The AARP Foundation and the U.S. Department of Housing and Urban Development may also be contacted for additional information. END

TITLE: Understanding What is a Reverse Mortgage CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Understand ARMs and Is it Right For You? CONTENT: Understanding Adjustable Rate Mortgage or ARMs\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nIf you are in the market for a house, you will want to choose the right type of home mortgage loan that will fit your needs and financial situation. Banks and mortgage brokers offer a wide variety of home loan products and finding the right one can be tricky as some loans carry some good options and some carry some very bad options. Now that you've scoured the housing market for the perfect house, you now need to scour the mortgage loan industry for the perfect home loan. One such type of home loan product is an adjustable rate mortgage or what is more commonly referred to as an ARM. Is this home loan right for you? Read on to find out more about this loan and if it will be a good fit for your home buying needs.\nWhat is an Adjustable Rate Mortgage or ARM?\n-------------------------------------------\nAn adjustable rate mortgage is pretty much what it sounds like - a home loan with an interest rate that can adjust periodically. A fluctuating interest rate means your monthly payments can go up or down, which makes it difficult to predict what your payments will be in the future. Today, when you take out an ARM, it is not a purely adjustable rate but a sort of hybrid ARM. That means, it starts out with an initial fixed-rate period and then changes into a pure adjustable rate. The most popular adjustable rate mortgage is the 5\/1 ARM, which means:\n* The first 5 years are at a fixed interest rate. (That's the \"5\" in 5\/1.)\n* After that, the interest rate can change every year. (That's the \"1\" in 5\/1.)\nLenders also offer 3\/1 ARMs, 7\/1 ARMs, and 10\/1 ARMs. Picking the right ARM depends on how long you plan to stay in the home you are buying and your financial situation.\nDetails You Need to Understand About ARMs\n-----------------------------------------\nAs with anything, the more informed you are about a topic the more you understand the ins and outs on that subject and the better decision you will make. This could not be any truer than with an adjustable rate mortgage. The most important aspects of an ARM you need to understand is index, margin, and caps. So, let's dig into each one so you will be able to make a well informed decision when it comes to using an ARM or not.\n**What is an index?**  After the fixed-rate period of your loan is over, your interest rate adjusts based on the index the lender uses. There are several indexes used with the most common ones being Constant Maturity Treasury, 11th District Cost of Funds Index (COFI), and the London Interbank Offered Rate, or LIBOR.  The value of these indexes change from month to month and can be found in the financial pages of most newspapers or online.\n**What is a margin?** Lenders add a margin, which is a fixed percentage rate, on to the index. The margin is set at the start of your loan, and it never changes. You will need to know what the margin is to determine whether you can handle the payments when your loan adjusts. For example, say your index is LIBOR, which has a value of .86 on the day your loan adjusts. You have a margin of 2.25. Your new interest rate is going to be 3.11 percent and you will be jumping for joy if your loan had started at 3.625 percent.\n**What are caps?** To keep your ARM from shooting out into the stratosphere, financial institutions put caps into place: the initial cap, the annual cap, and the life cap. The caps on your loan will be displayed like this 2\/2\/6, for example. Using this example, the first number (initial cap) is the maximum the interest rate can go up on the first adjustment. So, if you started at 3.25 percent, the max it would go up to would be 5.25 percent. The second number (annual cap) is the cap for every subsequent adjustment the rate can increase by above the rate during the previous period. Let's say your rate adjusted to 3.75 percent from 3.25 percent during the first adjustment. When your ARM adjusts in the next year, it is capped at 5.75 percent. The third number (life cap) in our example, 6, means the rate can never go higher than 6 points above the start rate. So if your starting rate was 3.25 percent, your rate will never go any higher than 9.25 percent.\n**How often can your loan adjust?** To know this, you need to look at the type of ARM loan you have on your house. If, for example, you took out a 5\/1 ARM, that would mean your loan will be fixed for 5 years and would adjust every year thereafter. If you took out a 5\/6 ARM, your loan would be fixed for 5 years but adjust every 6 months.\nHow Will an ARM Benefit You in the Long Run?\n--------------------------------------------\nThe most obvious benefit of taking out an ARM rather than a fixed-interest rate loan is the lower starting interest rate. Looking at rates as of the writing of this article, a 30-year fixed mortgage rate was 3.45 percent and a 5\/1 ARM was 3.13 percent. If you are not planning to live in this house for longer than 5 years, taking out an ARM will save you money with a lower monthly payments. You can get ARMs in 5, 7 or 10 year increments so if your plan is to sell your house within that time frame, an ARM is the better way to go. If you are planning on staying in the house until you die, taking out a fixed-interest rate loan is the better choice.\nIf you stay in your house longer than the initial fixed-interest rate period, you run the risk of your interest rate going up and your monthly payments increasing. On the flip side, your interest rate could decrease hence lowering your monthly payments. If you are a gambling type of person, this roll of the dice might appeal to you. But be warned, your luck may only last for a short while so you will need to be prepared if the rates suddenly shoot up due to catastrophic economic circumstances - remember 2008?\nBuying a house is exciting and exhausting. Our advice to you during this busy time is to take the time and research all the available home loans and make sure you are getting the mortgage loan that is best for you. Putting as much effort into getting the best loan as you did into finding the perfect house, will pay off for you financially in the long run. END

TITLE: Understand ARMs and Is it Right For You? CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Information on VA Home Loans for Military Personnel CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nThe VA (Veteran Affairs) Home Loan program was designed to help veterans finance the purchase of a home with favorable loan terms and at a rate of interest which is competitive with the rate charged on other types of mortgage loans. For a VA housing loan, a veteran is defined as a member of the Selected Reserve, active duty service personnel and certain categories of spouses established by the Servicemen Readjustment Act or the GI Bill of Rights. The Bill of Rights was enacted under President Franklin D. Roosevelt in 1944. The objective of the legislation was to help veterans achieve a life of security and comfort after serving their country.\nSince the law was passed after World War II, many soldiers and other military personnel have benefited from it. Its timeliness provided the much needed hope that these people needed after fighting the war. It expressed the country's appreciation of their valor and efforts to restore peace. The housing and financial assistance these heroes received allowed them to rebuild their lives.\nWhat are the Benefits of a VA Loan?\n-----------------------------------\nThese loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. The veteran is informed of the estimated property value through an appraisal and there is a limitation on closing costs. Lastly, they can opt for longer repayment terms and they have the right to prepay with penalty.\nEligible VA Loan Purchases\n--------------------------\nA veteran may use a VA loan to finance the following:\n* To buy a home, including townhouse or condominium unit in a VA-approved project.\n* To build a home.\n* To repair, alter, or improve a home.\n* To simultaneously purchase and improve a home.\n* To improve a home through installment of a solar heating and\/or cooling system or other energy efficient improvements.\n* To refinance an existing home loan.\n* To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements.\n* To buy a manufactured (mobile) home and\/or lot.\n* To buy and improve a lot on which to place a manufactured home which you already own and occupy.\n* To refinance a manufactured home loan in order to acquire a lot.\nVA Loan Process\n---------------\n1. Apply for a Certificate of Eligibility. A veteran who doesn't have a certificate can obtain one easily by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, to the local VA office.\n2. Decide on a home the buyer wants to buy and sign a purchase agreement.\n3. Order an appraisal from VA. (Usually this is done by the lender.) Most VA regional offices offer a speed-up telephone appraisal system. Call the local VA office for details.\n4. Apply to a mortgage lender for the loan.\n5. While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of a VA-approved appraisal, the loan can be approved and closed without waiting for VA's review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.\n6. Close the loan and the buyer moves in.\nService Requirements for VA Loans\n---------------------------------\nA person is eligible for VA financing if military service falls within any of the following categories:\n* **Wartime Service** — Must have served at least 90 days on active duty and been discharged or released under other than dishonorable conditions.\n* **Peacetime Service** — If service in the military fell between periods of wartime and one must have served at least 181 days of continuous active duty.\n* **Active Duty Service** — If you are now on active duty, you are eligible after having served on continuous active status for at least 90 days.\n* There is a two year military service requirement for enlisted veterans who enlisted and served in the military after September 7, 1980. Officers must have started their service after October 16, 1981.\n* For national guards and selected reserves, the required period to have been in service is six years. There are, however, other criteria for pre-qualification that must be met.\n* In case the military person eligible for the VA loan is dead, the surviving spouse (provided he or she must not have remarried) can avail the loan benefits upon compliance with the other requirements.\nLimitations on VA Loan Benefits\n-------------------------------\nIf you are qualified under the VA loan program, you can be assured of a loan amounting to 25 percent of the total value of your home so all you need to secure financing for is the balance of the the total value. If you need to borrow for the mandatory funding fee, you will have to apply for it separately as it is not included in the automatic eligibility provisions under the program.\nThe Veteran's Benefit Improvement Act of 2008 passed in October 10, 2008 allows veterans to purchase a home without any down payment in certain pre-approved home loan counties as stipulated by the Federal agency. The new law was signed by former President George W. Bush and it increased the maximum VA loan amount to nearly $1 million.\nIt is best to consult with a VA loan agency if you want to confirm your pre-qualifications under the VA loan program. These VA loan agencies are knowledgeable on the various cut-off dates that affect the required minimum periods of service. They can establish your eligibility and help you improve your chances to receive VA loan benefits.\nFor more information on VA Loans, go to the government website. END

TITLE: Information on VA Home Loans for Military Personnel CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Information on VA Home Loans for Military Personnel CONTENT: | | | | \n: . END

TITLE: Information on How to Apply For a Loan Modification CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nA loan modification can offer plenty of benefits for anyone struggling with financial obligations. When a bank considers modifying the original conditions of the mortgage loan, they can also create a way to stop your home from going into foreclosure. After all, if the bank agrees to work with you to find a more affordable way for you to get back on track financially, then they're not making moves to take your home.\nNot only is it possible to get your mortgage payments reduced with a successful loan modification, but you may even get your bank to agree to reducing your interest charges and waiving some of your penalty fees too.\nLoan Modification Application\n-----------------------------\nMost banks and lenders require that you submit your application for a loan modification in writing. This is called a letter of hardship and should include your reasons for being in such financial difficulty, as well as your request for a modification to your existing loan to help ease the pressure while you get back on your feet.\nThe unfortunate part about this requirement is that the majority of people who attempt to write their own hardship letter get the basics wrong. This can mean your application is declined and people can frequently find their bank unwilling to help them at a time when they need it most.\nBanks can be much easier to negotiate with than most people believe. After all, if they can help you catch up your delinquent payments and get back on the right track, they get to keep a customer that keeps paying them interest. Banks really don't want to take your house, but they do want to know that you're going to pay back the money you borrowed from them eventually.\nWriting a Hardship Letter\n-------------------------\nBefore you sit down to write your modification request, you will need to think about what you want to ask the bank to do for you. Most people believe that telling the bank all about how difficult their situation is and how hard it is to find a job in this economic climate will help the bank feel more sympathy for their situation.\nUnfortunately, the banks aren't in business to feel sympathy. They're in business to lend you money that you promised to pay back to them when you signed your credit contract. That's how they make their profits and pay their own staff. Keep this in mind when you fill a loan modification letter with a spiel about how upset you are about losing your home or how you were made redundant for your job and can't find new work. They simply don't want to hear it.\nThe bank's loan mitigation officer only wants to know what your plan is to get back on your feet financially. This means you should work out a clear and rational plan for what you're going to do about catching up your overdue payments. If the person reading your modification letter can see that you're trying hard to find a realistic solution to getting back on your feet, they're more likely to approve your application.\nHow Much Modification Do You Need?\n----------------------------------\nYou can't write a hardship letter asking the bank to modify your loan if you don't specify how much modification you need. If your financial situation has changed and your income is much lower than it used to be, then you'll need to write out an accurate budget.\nWrite down all of the income coming into the household each month and then make a list of your current monthly expenses. Tally up the figure at the bottom and make a note of how little you have left over each month to pay for living expenses and other necessities.\nThen write a second list of expenses, showing a lower mortgage payment amount and tally up the new figure. This should show the bank that approving a loan modification request could be exactly what you need to help get you back on track again.\nWriting a Loan Modification Letter\n----------------------------------\nOnce you have thought through your plan to catch up your past due payments and created a budget showing how a loan modification can help you, it's time to write your letter.\nRemember, the bank's loss mitigation officer receives a lot of calls and letters from upset, hurt, angry customers every day who are not being rational about helping themselves. You don't want to be one of those customers. Keep your writing tone light and positive and you'll find that the staff member will be far happier to deal with you than with the less-friendly customers.\nNo matter how bad you think your financial situation is right now, always remember to point out to the bank that it's a temporary problem and you're doing everything in your power to put it right. They want to know that you're looking for any ways at all to bring in some income and meet your financial obligations until you can find a replacement job.\nIf you can keep your application letter positive and make it very clear how and why a loan modification will be beneficial to your current situation, then you stand a much better chance of having your application accepted. END