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RISMEDIA, August 25, 2010–Consumers with strong financial knowledge begin saving earlier and are more confident in their everyday financial tasks, according to the TD Bank Financial Literacy Poll released by TD Bank.

Education at an early age is key to achieving financial confidence. Many consumers doubt their financial skills and believe they were not taught enough at a young age and feel saving money is difficult. TD Bank surveyed 2,160 consumers to better understand the financial literacy and attitudes of consumers in the Northeast, Florida and Mid-Atlantic.

“The poll reveals that it is imperative for parents to act as the primary role model to their children if they want financially successful children,” says Suzanne Poole, executive vice president, retail sales strategy and distribution, TD Bank. “Starting financial literacy lessons early results in adults who are more confident in their money decisions, are more financially literate and are more skilled at saving money.”

Who is Your Financial Role Model?
Although this is not an easy question to answer, more than one-quarter of consumers struggled to identify any financial role models. The poll also revealed the primary sources for financial information and help in managing finances. Forty percent of consumers in the Northeast and 38% in the Washington, D.C. region turn to family members for financial advice; while Warren Buffet and famous financiers often edge ahead of financial advisors. In fact, only about one-quarter of the consumers surveyed have a financial advisor or financial planner.

Consumers with “good” financial literacy started learning about money slightly earlier than the average consumer, but only one-half of consumers started learning or having conversations about money under the age of 18. From those who did start learning about savings at a young age, 77% of New Englanders, 80% of Mid-Atlantic residents and 78% of Floridians say they learned from their parents.

Financial firsts are important to financial literacy confidence and education. Although most polled, about 70%, can remember opening their first bank account, only half can remember their first deposit or investment. However, those with “good” financial literacy, about 57%, could recall their first deposit amount.

“TD Bank believes it is important to not only start having financial conversations at a young age, but to also make those first financial experiences memorable,” said Poole. “More than 22 years ago, we created the WOW!Zone, a free, financial literacy program to help children ages 5-18 develop strong financial skills, in school and online. It is a great tool for parents to use to make learning about money fun!”

Responsibility and budgeting are taking a more prominent place at the dinner table today than when parents were younger. Sixty-two percent of parents versus 77% of children today learned about the importance of money. About 75% of parents are teaching their children about financial responsibility as well as saving, budgeting, the value of money, credit cards, etc., while only about 15% of parents were taught about investments and only about 20% learned how to use a credit card.

Poole added, “Today’s children are not learning about money that differently than their parents did. Parents today are taking primary responsibility in financial education. Parents should ask themselves if they are the financial role model they need to be. Starting young is not the only key to success. We found that the topics parents talk about and creating memorable financial moments matter, too.”

Other key findings from the survey include:

• About 94% of those polled with “poor” financial literacy skills wished saving money wasn’t so hard versus 65% with “good” skills.
• About 40% of consumers in New England, the Mid-Atlantic and Florida with “poor” financial literacy skills are confident in making financial decisions versus 93% with “good” skills.
• About 81% of those surveyed wished they would have started saving earlier, and about 55% of them were definitely not taught when young.
• 71% of consumers in the New England, Mid-Atlantic and Florida regions are confident in their understanding of everyday financial tasks such as paying bills on time, followed by balancing their checkbook.

The majority of consumers in the New England, Mid-Atlantic and Florida regions are either extremely confident or very confident in financially preparing their children; consumers responded that responsibility, saving money and budgeting money are the most important topics to teach children today.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. I have free access to the MLS and you can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

By Debra Karplus
8 July 2010

Imagine that you’re a loan officer at the local bank. Two customers, Mr. Rich and Mr. Buck, come in to borrow money. You check Mr. Rich’s history; he has an excellent credit score, 800. Mr. Buck’s score is an embarrassingly low 300. To whom should you lend money? Mr. Buck’s low credit score indicates that he might not be able to repay the loan. Buck doesn’t stop here; goodbye, Mr. Buck.

What is a credit score?

When you were in school, your grade point average (GPA) indicated how well you performed in your classes. Your SAT and ACT scores measured overall achievement in language and math. Colleges used these indicators to decide if they wanted to admit you to their freshman class.

Your credit score works in a similar way as school tests, except that it’s a measure of your credit risk. Like college entrance exams, a credit score is derived from a standardized formula. Late payments on bills, having no credit references, and unfavorable credit card use will mar your credit history and lower your credit score.

Your credit report indicates how likely you are to pay your bills. It’s used anytime you’re seeking a mortgage, car loan, or credit card and also, for determining credit limit, which is the maximum amount of money you can borrow. Your credit score can even determine the premium you’ll pay for car insurance. Your credit report determines not only whether you will be given credit, but also, what interest rate you will be eligible for. A higher credit score gives you a lower interest rate when you’re borrowing money.

Who determines your credit score?

Credit scores range from 300 to 850. Most people’s score is 600 to 800. A credit score of over 720 is considered to be a good score and will generally get you the best interest rate.

There are three companies that provide credit scores, Equifax, TransUnion, and Experian. They are corporations that make their money, not directly from you, but from companies such as banks, that loan money to people. Each of the three allows you, the consumer, to receive a free credit report annually. But, it’s not done automatically; if you want to know your credit score, you’ll need to get on the website of one of these three companies and specifically request your score. Each calculates your score a bit differently. You can learn about these companies on their websites.

Equifax has been around for about one hundred years and is located in Atlanta, Georgia. They are a Standard & Poor’s (S&P) 500 company publicly traded corporation; symbol EFX, on the New York Stock Exchange. Equifax serves fifteen countries in North America, Latin America and Europe.

TransUnion, a global company, located in Chicago, serves twenty-five countries on five continents, for the past thirty years. They provide credit services and information management. They are a limited liability corporation (LLC); therefore they are not a publicly traded company.

Experian serves sixty-five countries and has 15,500 employees. Their stock trades on the London Stock Exchange, but formerly traded on NASDAQ under the symbol EXPN.

How can you improve your credit score?

It’s prudent to check your credit score yearly with one of the three credit reporting companies. When you receive your report you want to first, review it carefully and see if there are any errors or flaws. For example, if the report shows an old unpaid balance on your Target credit card, you’ll want to contact Target, and get that corrected. The other way to raise your credit score is to make sure you pay down any credit card debt that you have.

You should not close any unused accounts. This may go against your better judgment. But, closing credit card accounts, especially more than one at the same time, could be a red flag that you might be a credit risk.

Why does your credit score matter?

Your credit history is your credit reputation. It is maintained by a credit bureau. So how can you have a credit history if you’ve never had a credit card or borrowed any money? And, how do you establish a good credit history? The main way is to open a checking or savings account and to manage it well, such as avoid overdrawing the account. Second, pay your bills on time, and third, use your credit card carefully. These may seem obvious, but many people must be clueless, because they have a low credit score.

Borrowing money is a smart way to establish a credit history and have a favorable credit score, as long as you are responsible about using credit, whether from a lending institution or a credit card. When you are ready to finance your first car or get a mortgage for a house, you will be very pleased with yourself if you have a high credit score.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

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By Nirvi Shah

RISMEDIA, June 28, 2010–(MCT)–Jenny Camacho moved to South Florida in December, hoping the weather would be easier on her health than the frigid, snowy winters of New York and looking forward to living closer to two of her children.

She had spent four years working as a cook at a senior center in Brooklyn, fine-tuning her skills at preparing meals for people with special dietary needs. Despite the recession, she thought she would find a job in a region known as a snowbird and senior roost.

Jobless six months later, she had run up debt on her credit cards, trying to preserve some of her savings and still make ends meet. Camacho rents an apartment in Sunrise, Fla., with her youngest daughter, Priscilla.

But Camacho, 51, recently met with counselors from Sunrise-based American Debt Counseling after hearing them speak at Workforce One, a Broward County employment office. Ever since, she has stretched her budget enough that she hasn’t used her credit cards since April.

“Right now there is no income. They teach you how to control your spending,” Camacho said.

In this economy, it’s difficult to think about boosting credit scores, building savings or erasing debt. But it’s not impossible — and the recession may be just the right boost someone at any income level needs to brighten their financial picture, said Barbara Stark, director of community development and education for American Debt Counseling.

Her nonprofit company and several others in South Florida offer free advice and help to people in need of credit counseling and money management.

“There’s always hope,” Stark said. “It’s not a question of how much money you have. It’s how you manage it.”

For example, she said, the true cost of using a credit card can be really scary — if you know what that true cost is. A $50 dinner charged on a card with an interest rate of 22 percent can cost $2,500 paid over 20 years, she said.

“Once they begin to see they’re not earning any more money, yet they’re living a better life, it makes sense,” she said. “You should get help before you really need it, so you don’t get into a dire situation.”

In Camacho’s case, things were pretty dire by the time she requested help, said Andrea Mitchell, a certified credit counselor.

Mitchell talked to Camacho’s creditors, who agreed to lower the interest rates on her debt — a service that Camacho is paying for. Mitchell has helped Camacho find occasional work, including baby-sitting. And she counseled Camacho to rely on her family.

“She helped them and now they’re reciprocating,” Mitchell said. Camacho’s son also lives in Broward. “Jenny is very much a survivor. She came to me wanting to survive. There’s no other word to describe her.”

In addition, Mitchell came up with a spending plan for Camacho — who was already spending little more than for basic necessities.

MAKE A SPENDING PLAN: Knowing what your monthly expenses are is key, said Ellen Siegel, a certified financial planner in Miami.

Figure out how much money is coming in from every source: a paycheck, child support, alimony, social service agencies.

Then figure out what’s going out — fixed expenses, such as rent and a car payment; variable expenses, necessary items that aren’t a set amount each month, such as food and medical bills; and discretionary spending, things you don’t need, but want, such as a vacation, movie tickets, birthday presents.

“Too many people have no idea whatsoever where their money is going every month,” Stark said.

Siegel, a member of the Financial Planning Association of Miami-Dade, is a volunteer with the group’s new Money 101 program, which offers services at the United Way of Miami-Dade’s new Center for Financial Stability in Hialeah.

She takes the idea of building a spending plan one step further.

“How do we get into trouble? Money’s not real,” Siegel said. It’s in the form of a credit card, debit card, check or bank balance.

Once a month, she cashes a check and puts the cash into different envelopes for the month’s expenses — gas, groceries, clothing, rent or mortgage payment, utilities and an emergency fund, a must for everyone, no matter their net worth.

“That’s a very, very powerful strategy,” Siegel said. It shows how far your money goes — or doesn’t.

KEEP YOUR CREDIT CARDS: When someone is in debt, it may be tempting to cut up credit cards so they can’t be used to accumulate more debt, Siegel said.

While that sounds like a good idea, those credit cards may be needed at some point.

Her suggestion: Put them in a plastic bag and put the bag in a cup of water. Put the whole thing in the freezer.

“If the car blows up and you have to use your credit card, you can,” she said. Any time the cards are needed, it will take patience to use them. They’ll have to be thawed — and slowly, since microwaving the frozen cards would melt them.

“You can’t just be hungry, angry, lonely or tired and go shopping.”

Building a good credit history and improving a credit score actually requires having some debt, or a history of paying off debt regularly, Stark said. And credit cards held for a long time are good for a credit score.

Although Camacho isn’t using her credit cards anymore, she’s still making payments each month.

“We got them to lower the interest rate so much so that she was able to make a minimum payment,” Mitchell said. It’s low, but not so low that Camacho will be paying off her debt forever. She should be able to pay off the debt she has now in five years or less.

One financial guru’s philosophy is to line up every bill in size order. Pay the minimum on every bill. Whatever money is left over should be used to pay off the smallest bill.

The advice isn’t typical — many financial planners would suggest putting more toward the bill with the highest interest rate, Siegel said, but faith-based financial expert Dave Ramsey’s method offers a sense of accomplishment.

LOOK AT CREDIT REPORT: Credit reports are free. But that doesn’t mean people are looking at them, said Angelo Gonzalez of Miami Saves, who is director of the Economic Independence Program at the nonprofit Cuban American National Council.

“We encourage people to look twice a year,” he said. “We’re lucky if they pull it once every five years.”

The only truly free reports — that don’t require signing up for any additional services — are at annualcreditreport.com. Beware of impostor sites that prey on people who misspell the website.

The reports don’t include scores, however. Those must be purchased.

The reason to look at the reports: Find errors, forgotten debts and fraud — and start fixing the problems, Gonzalez said.

That is, if you can tell what they are. “The other challenge is, have you ever looked at your credit report? It’s like reading Greek. A credit report is useless unless you know how to read it,” he said. “We’ll hold a workshop and go item by item.”

While all of his organization’s services are free, they can also pull credit reports — one from each bureau — for about $13.

SEARCH FOR SAVINGS: They also teach a variety of courses and offer suggestions on how to stretch a limited budget.

Some ideas are more obvious than others, he said, such as buying more fruits and vegetables and less meat and seafood to lower food bills.

Partnering with another family while shopping may also cut costs: Buy in volume at a wholesale store and divvy up the items.

“You end up saving a lot of money. People get that. That resonates more than putting $10 in a savings account,” he said.

Negotiate with everyone, Siegel said, even if you think someone won’t budge on the price.

“If there’s a doctor bill, if there’s a car bill, just ask. Say, ‘I need some consideration. What can you do for me?’ ” Siegel said. “The world is sympathetic now. Everybody is feeling it.”

FIND MORE INCOME: Consider renting out a room in your home — to someone you trust — to bring in more income, Gonzalez said, and be sure to have the renter sign a lease agreement.

And don’t think collecting unemployment means you can’t work, he said. The income must be declared, but if you can find suitable part-time work, take it. Camacho’s youngest daughter, Priscilla, 19, is working part-time and Camacho is willing to take any job, even if it doesn’t involve working in a kitchen.

Whatever someone’s situation, there’s a way out.

Linda Eads, founding principal of MAST Academy, recently created the Youth and Family Financial Literacy Institute in Miami-Dade. The nonprofit’s aim is to teach financial literacy in schools and families — and, she hopes, prevent some of the situations people have found themselves in during this recession.

“As I matured, I realized, ‘Wow, I can do so much more with this if I would budget even better,’ ” Eads said. “No matter how old you are, you can change your ways.”

Jenny Camacho agrees — although she said she doesn’t have the money to pay her bills beyond the end of June.

“Everything is going to come out OK. We’re going to survive with whatever we have,” she said. “Sometimes you struggle but something better comes out on the other side.”

(c) 2010, The Miami Herald.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

RISMEDIA, May 17, 2010–(MCT)–If you’re in debt as we head into summer, it’s time to start thinking about snowflakes.

The idea of “snowflaking” is to make small debt payments, often on a credit card balance, more than once a month.

These snowflakes become part of your debt snowball, a technique by which you pay the minimum monthly payments on all debts except one that you focus on. As you pay off that debt, apply all the money you were paying on it to your next debt, which pays off that one faster, and so on. It creates a snowball effect, as if a snowball was gaining speed and rolling downhill.

The benefit of using snowflakes and a snowball is becoming debt-free quicker and paying far less interest. You’ll even be motivated and help your credit score. This is one time when “throwing money at the problem” works.

Here’s how to use snowflakes, also called micropayments, and why those in debt should consider it:

—Call your card company: Most allow you to make many payments in a month for free. Call the phone number on the back of the card and ask about your issuer’s policy. “The majority of the major issuers will allow you to do this,” said Bill Hardekopf, founder of credit card comparison site  LowCards.com.

—Use regular snowflakes: Set up additional automatic payments to your credit card company. For example, if you get paychecks weekly or biweekly, make payment on the payday. One painless strategy is to pay half your usual amount biweekly. This amounts to 13 monthly payments in a year, instead of 12. “And all of that extra payment goes to pay off the balance. It doesn’t go to interest,” Hardekopf said. “So, your balance will come down faster.”

—Use irregular snowflakes: Hardcore snowflakers make many small payments in a month. If you skip a $9.46 lunch out at work, ship that amount to your credit card company. Work two hours of overtime or get a tax refund? Slap it against the debt. The point is to immediately make a payment with extra money or cash you saved.

Besides erasing debt quicker, snowflaking makes sense for other reasons.

—You’ll save on interest: Most credit card companies assess interest daily on unpaid balances. So paying early saves weeks of interest charges. Month after month, savings add up. And the quicker you get rid of the debt, the less interest you pay.

—You’ll gain motivation: Making more payments forces you to think about your debts more often and gives you a more frequent thrill from seeing balances dwindle. If you want more motivation, focus the extra payments on debts smallest to largest. That allows you to pay off a few quickly, which can be a big emotional boost, like losing a few pounds in the first week of a diet. If you’re more the mathematical type, pay off debts from highest interest rate to lowest.

“If you feel, ‘Hey, I’m cutting into this,’ you can gain momentum psychologically,” Hardekopf said. “You might think, ‘I’ll skip going to dinner this week and take that 20 bucks and tack it onto my credit card payment.’ “

—You’ll improve your credit score: For those who carry balances, paying off debt quicker improves their credit score quicker. You might avoid late payments because you’re more focused on the debt. Multiple payments can also help those who don’t carry balances. Your credit scores are partly calculated on how much of your available credit you’re using at any time. If you use $4,500 of a $5,000 available limit, you’re penalized by credit-scoring models regardless of whether you pay the balance at month’s end. By making multiple payments, you reduce your credit-usage ratio, which accounts for 30 percent of your FICO score.

As a Reno/Sparks Nevada real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  I can be reached by email  chance at ballard-company.com

RISMEDIA, April 14, 2010—Some 89% of Americans said they were at least fairly well organized or better when it comes to their important financial documents, but nearly one-quarter had either lost or forgotten about critical paperwork, according to a nationally representative poll by the Consumer Reports National Research Center.

Worse, 16% had lost money or incurred a charge because of the poor organization of their paperwork. The survey also revealed that 40% of Americans think they can find a document at a moment’s notice, and 49% can do so with little looking.

Married and domestic couples agree as to which sex is more organized: 58% of the women surveyed said they had a better idea of where their most important documents were than their spouses did; only 30% of the married men thought they had a better idea.

But some of the respondents may not know as much about their partner as they think – 5% admitted they had hidden accounts from a spouse or significant other.

“Good record keeping is essential and makes regular events like tax time or unexpected emergencies like the passing of a loved one go smoother. If you’re disorganized about your paperwork, you can lose a significant amount of money on late fees and interest charges,” said Mandy Walker, sr. project editor, Consumer Reports Money Advisor (CRMA).

Consumer Reports Money Adviser’s experts say that to help avoid identity theft, people should shred anything they plan to throw away that contains personal data. More than 50% of the people surveyed said they put documents through a shredder, 26% tear them up, 15% claim to burn them, and 5% admit to doing nothing before they trash them. Consumer Reports recommends consumers look for a crosscut shredder rather than a strip one, which leaves long paper bands that can be reassembled.

Tax season is the perfect time to start tackling the paper piles. The act of filing (or gathering your information for a tax preparer) forces you to become reacquainted with your finances. You can divide nearly all of your financial records into four categories: papers that you need to keep for the calendar year or less; ones that can be destroyed when you no longer own the items they cover; tax records, which you should save for seven years; and papers to keep indefinitely.

What to keep for 1 year or less:

CRMA’s experts advise people to set up a place to keep bills until they’re paid. As soon as a bill comes in, put it in a folder labeled “bills to pay.” Then set an electronic calendar reminder when you’re going to pay them. Documents that you have no long-term need to keep include:

Bank records. Keep deposit and ATM receipts until you reconcile them with your monthly statements.

Credit card bills. You don’t need to keep them after you’ve paid them unless they support a deduction you’ll be taking on your taxes, such as for a charitable donation (in which case you should file the bill with your current-year tax records). If an item you’ve charged is under warranty, keep the bill until the warranty expires.

Investment statements. You can shred your monthly and quarterly statements from brokerage, 401k, IRA, Keogh, and other investment accounts as new ones arrive. But hold on to annual statements until you sell the investments.

What to keep for a longer period:

Documents relating to investment purchases, loans, and other items that expire can be stored in an out-of the way file cabinet. But try to go through them once a year and toss out papers below including:

Household furnishings paperwork. Keep receipts, warranties, and instruction booklets for major appliances and electronics.

Loan documents. Keep closing documents for mortgage, vehicle, student, and other loans in a safe-deposit box. You can get rid of them after the loan is paid off.

Savings bonds. Hold these in a secure place until you cash them in. Or you can convert them to electronic form using the Treasury’s SmartExchange program.

What to never toss:

Hold on to essential records such as birth or death certificates, marriage licenses, and divorce decrees. Social Security cards and military discharge papers should be kept in a safe-deposit box. Other documents to hold on to forever:

Defined-benefit pension documents. Keep pension-plan documents from your current and former employers. Store them in your file cabinet.

Estate planning documents. Keep copies of wills, trusts, and powers of attorney in your safe-deposit box. You should also make sure your attorney and your executor have copies.

Life insurance policies. For permanent life insurance- policies that have a cash value or investment component- keep documents and a list of the companies that issued them and their phone numbers in your safe-deposit box.

For more information, visit www.consumerreports.org.

As a Reno/Sparks real estate professional I encourage any questions or comments or the Reno/Sparks real estate market or any of the articles posted.

Contact me at  chance at ballard-company.com  www.myspace/chancegates

The question that keeps arising when a client approaches me about buying a home is “what information should I have ready for when I apply for a loan?”.

So to help people out who are getting ready to enter the Reno/Sparks real estate market here is a checklist for you.

Your Residence History:

_____  Your previous addressed for the past two years

_____  The length of time you’ve lived in each place

_____  If you currently rent, your landlord’s name and address (12months)

Your Employment History:

_____  The names and addresses of all your employers for the last two years

_____  The dates you worked at each place of employment

_____  If there have been any gaps in your employment and why

All Outstanding Loans and Credit Cards:

_____  The creditor’s name and address

_____  Your account number

_____  The current total balance you owe and months left to pay

_____  The amount of the monthly payment

Savings, Checking or Investments Accounts

_____  The name and address of each financial institution

_____ Your account number

_____  The current balance or value

Real Estate You Currently Own ( For Each Property)

_____The property address

_____  The estimated market value

_____  The outstanding loan balance(s), the name and address of  the                     mortgage company(s) and your account number(s)

_____ The amount of the monthly payment ( including taxes, insurance and                    HOA dues)

_____  The amount of your monthly rental income (if applicable)

Personal Propert You Own:

_____  The net cash value of your life insurance

_____  The make, year, and value of your automobiles

_____ The value of your furniture, jewelry, or other personal property

Read more at http://chancegates.com/tag/mortgage/

RISMEDIA, February 23, 2010—(MCT)—Credit card issuers are now going to have to play by a whole new set of rules that are considered consumer-friendly—but will also cut into some of their traditional sources of revenue.

Don’t expect those companies to take that lying down. Card issuers are expected to spend the next year experimenting with new products and fees—as well as higher interest rates—testing just how much consumers are willing to shell out.

The Credit Card Accountability Responsibility and Disclosure Act, signed into law in May, is a sweeping overhaul of the card industry and includes provisions to help reduce the amount of interest consumers pay. The bulk of reforms are set to take effect February 22, 2010.

As card issuers prepared for the new rules in recent months, many have raised interest rates on customers—to the dismay of consumer advocates. At the same time, the weak economy and fears of rising defaults caused card companies to cancel accounts and lower credit limits on anyone who appeared risky.

The CARD Act will help many vulnerable consumers. “The biggest winners are consumers who have been taken the most advantage of,” says Josh Frank, senior researcher with the Center for Responsible Lending. These are cardholders who carry balances and have seen their interest rates jump or card terms change for no apparent reason or because they accidentally triggered a late fee, he says.

Consumers who are good managers of credit, though, might be unhappy to find that card issuers may be passing on higher interest rates and fees to them.

Here’s what the next year in credit cards might look like:

Up, up and away: The CARD Act doesn’t prevent issuers from raising interest rates, although there are more restrictions on when and how they can do so. Because card issuers can’t quickly raise rates or change terms on their riskiest customers, they will charge higher interest rates across the board to protect against potential losses, banking experts say. Synovate, which tracks card solicitations, found that offers in the fourth quarter of last year carried an average rate of 13.5%, up from 11.47% a year earlier.

Charge or else: “A lot of the talk around the industry is trying to figure out some of the fees that are going to come,” says Anuj Shahani of Synovate. He says one of the most anticipated: the inactivity fee. Card companies say it costs them money to maintain accounts, and they are starting to slap a fee on unprofitable customers who rarely use their cards.

Welcome back, annual fees: Once common, annual fees now usually appear only on subprime and high-end reward cards, Shahani says. But card issuers are eyeing a revival. Synovate reports that 35% of card offers in the fourth quarter carried an annual fee, the largest percentage in a decade. A year earlier, 23% had annual fees.

Fees for not knowing your limits: Issuers have typically covered customers going over their credit line, but often for a steep price of $35. The CARD Act doesn’t allow over-the-limit fees unless customers opt to have their overcharges covered. Many card issuers are working 24/7 to develop opt-in policies, Brauneis says. Consumer advocates expect a big promotional push by banks to get customers to sign up for this service. Don’t take the bait. “I can’t think of many consumers for whom it would be worth it,” Frank says.

Pricier balancing acts: The standard fee for transferring a balance from one card to another used to be around 3% of the amount transferred, not to exceed $75 or so. But that fee has been going up to 4% and 5% in the past year, and the dollar cap has disappeared. So you can end up paying hundreds of dollars on a transfer. Consumer advocates expect issuers to continue pitching balance transfers to collect the lucrative fees. If you’re tempted to transfer to another card for a lower rate, make sure you know the terms. Card reforms require that promotional rates must last at least six months, so check what your rate will jump to after that.

Skimpier rewards fro some: Card issuers last year watered down rewards, such as reducing points on purchases or trimming cash-back awards. That dilution is expected to continue on basic cards. But issuers will be launching richer reward programs to compete for the most profitable customers: good credit risks who carry a balance, pay interest and occasionally trigger fees.

New law, new products: Issuers have introduced new cards in the past six months, and they say these products have been in the works for a long time. But many seem designed in the spirit of the CARD Act, which aims to make card rules clearer and turn us into better money managers.

(c) 2010, The Baltimore Sun.

Distributed by McClatchy-Tribune Information Services.

As credit card companies continue to hike rates and continually change the terms and conditions of your account, it is crucial for credit card users to make the most of their credit. The following tips will help you get on track to using your credit card wisely.

1. Pay on time. Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month- for example, if it’s due on the 10th and you get paid on the 15th- contact your credit card company to see if they will change your billing cycle to fit your cash flow.

2. Stay below your credit limit. If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online. Also, be aware that some merchants (for example, hotel and car rental companies) put a “hold” on your credit card based on their estimate of the amount you will charge. This can reduce your available credit until the final charge is processed.

3. Avoid unnecessary fees. Credit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees. If you need a cash advance, withdraw enough so that you don’t have to take a second cash advance and incur a second fee later in the month. Read your credit card agreement to learn more about the fees that your credit card company charges.

4. Pay more than the minimum payment. If you can’t pay your balance in full each month, try to pay as much of the total as you can. Over time, you’ll pay less in interest charges- money that you will be able to spend on other things, and you’ll pay off your balance sooner.

5. Watch for changes in the terms of your account. Credit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these “change in terms” notices, you can decide whether you want to change the way you use the card. For example, if cash advance fees increase, you may decide to use a different card for cash advances. If you have a card with a variable rate or if you have an introductory rate that is ending, be aware that credit card companies are not required to send you a notice about raising your interest rate. Interest rates are listed on your monthly bill. Read your bill carefully and take note of any changes.

For more information, visit www.federalreserve.gov.

With the start of  2010 , what will you be looking forward to in the New Year? Buying your first home in the Reno/ Sparks area? Sending your last kid off to college? Or obsessing over your own personal mountain of debt, even more worrisome in this uncertain economy? It may feel like “Resolution Impossible,” but if you follow Eric Tyson’s advice, you’ll remember ‘10 as the year you finally took control of your financial future.

“While the situation is improving, Americans carry too much consumer debt,” says Tyson, author of Personal Finance for Dummies, 6th Edition.. “If you have credit card debt or auto loans, take some solace in the fact that you’re far from alone and that many others have overcome these hurdles. Consumer debt is not okay, particularly in a slow economy such as this one. It can damage your personal relationships and mental well-being, not to mention the stability of your financial future.”

Here are a few tips from Tyson that will help you improve your financial health in 2010:

Partake in a little self-reflection. A misaligned mindset toward spending and shopping—compulsive or otherwise—can severely affect your financial and personal well-being. If you think you might have a problem with shopping or spending, there are several questions you should ask yourself:

-Do I feel guilty about shopping?
-Is my shopping causing financial trouble?
-Is my shopping, spending, and accumulated debt leading to feelings of helplessness, anger, confusion, fear, or depression?

Make a plan and stick to it. The reason so many New Year’s resolutions fail is that we simply state the thing we want to improve and then never create a plan for helping us get from point A to point B. Most people don’t like to plan unless we’re talking about something fun, like a vacation. But actually, planning for your financial future is a little like planning a vacation. You’re organizing your money and time so that you get to do all the great things you want when you get there. Look at it that way, and you might actually enjoy the process.

Get rid of your four-wheeled debt. Too many people define necessities by what those around them have. A brand new car is not a necessity, although some people try to make it one by saying, “I need a way to get to work.” Guess what? There are plenty of far less expensive used cars out there that will also make it to your office. If you take out an auto loan to buy a car that you really can’t afford and you take a similar approach with other consumer items you don’t truly need, you’re going to have great difficulty saving money and accomplishing your goals. Moreover, you’ll probably feel stressed all the time—which is a poor trade-off for the (short-lived) “new car smell.”

Start making your purchases based on need, not emotion. It can be easy to give in to all of those advertisements telling us how much we “need” that new car, expensive gym membership, or trendy outfit. Marketers play on insecurities, fears, and guilt and suggest that you can feel better about yourself by buying their products. You won’t be able to overcome spending and consumer debt until you recognize these pressures and how they corrupt your buying decisions.

Research before you enter the store. Prior to going shopping for necessities that aren’t everyday purchases—say, a new refrigerator—do some research first. Your research will help you identify brands, models, and so on that are good values. You don’t want to make an expensive mistake.

Watch your food budget. Dine out less and keep stock of the groceries you already have. Learn to cook if you don’t know how. Try to keep a healthy inventory of groceries at home. This will minimize trips to the store and the need to impulsively dine out because your cupboard is bare. Try to do most of your shopping through discount warehouse-type stores, which offer low prices for buying in bulk, or grocery stores that offer bulk purchases. Saving on the amount you spend on food will help you put more money toward paying off your debt and eventually setting money aside for investments.

Become more energy efficient. Check out opportunities to make your home more energy efficient. Adding insulation and weather-stripping, installing water-saving devices, and reducing use of electrical appliances can pay for themselves in short order. Many utility companies will even do a free energy review or audit of your home and suggest money-saving ideas.

Watch what you are paying for insurance. Many people overspend on insurance by carrying coverage that’s unnecessary or that covers small potential losses. Coverage of small losses, such as $100 or $200, is not useful for most people since such a loss wouldn’t be a financial catastrophe.

“It won’t be easy getting out of debt, and it’s certainly not something you will be able to achieve overnight,” says Tyson. “Like losing weight, it’s something that takes constant dedication but has a great payoff in the end. Whenever you lose focus or feel like giving in, think about the wonderful benefits of financial well-being. Once you’re out of debt, the money you are able to invest will mushroom into substantial savings that will allow you to get more for your money,” concludes Tyson.

About the Author
Eric Tyson is one of the nation’s best-selling personal finance book authors and has penned five national bestsellers. His work has been featured and quoted in hundreds of local and national publications and media outlets. He was also a featured speaker at a White House conference on retirement planning. A dynamic and provocative speaker, he has spoken at many corporations and nonprofits.

For more information, visit www.erictyson.com.

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• Primary school children to be given compulsory lessons on avoiding debt (telegraph.co.uk)

These days one of the biggest impediments to closing a Reno/Sparks real estate sale can be the buyer’s ability to get a mortgage.

Here are some tips for anyone who hopes to land a loan:

• Turn to the government. The biggest source of loans these days is the Federal Housing Administration (FHA) and the Veterans Administration (VA). These programs accept borrowers with lower credit scores and allow them to put down as little as 3.5 percent of the purchase price.

• Document, document, document. Borrowers will need bank statements, brokerage statements, W-2 forms and tax returns.

• Boost credit scores. Borrowers should avoid having more than one-third of their maximum borrowing capacity outstanding on one credit card. If necessary, rotate the debt among several cards.

• Work your connections. Comparison shopping is easy online, but if your customer has an established relationship with a local bank, suggest they try that lender first.

Source: BusinessWeek.com, Christopher Palmeri (01/23/09)

Being a Reno/Sparks real estate consultant I always appreciate any question or comments on the Reno/Sparks real estate or any of the articles I post.

Send all questions to chance@ballard-company.com

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• What is a “streamline” mortgage?  zillow.com)