Education

Hybrid Cars: Cheap Transportation?

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Maybe you want to do your part for the environment. Perhaps, you want a more economical way to travel since gasoline prices are on the rise. Or, you may want to purchase a vehicle that rewards you with federal tax incentives. Regardless of your reason for purchasing a hybrid vehicle, you need to do research and make sure you get the most out of this financial investment.

There are many web sites that help consumers with the process of purchasing a hybrid vehicle.  However, the research itself can still be overwhelming. Therefore, below are some important aspects you should consider.

Review Review Review

The cost to replace hybrid parts can be extremely expensive.  Reviewing your options when considering these costs can help you quickly eliminate some hybrids off your list. Check the Technical Service Bulletins (TSBs) and recalls. Go to www.edmunds.com and search for the vehicle you have in mind for more information.

Warranties

If you are purchasing a used hybrid or plan on owning the vehicle longer than the standard warranty, really think about spending the extra bucks on an extended warranty.  Because hybrid vehicles are loaded with new technology, the cost to repair them is going to be extremely high.  Not to mention the cost of the knowledgeable mechanic working on these vehicles. So, between repair and labor, it may be a wise decision to purchase the extended warranty and have a little peace of mind.  Be sure to look into what the manufacturer offers.  If you cannot afford to buy the extended warranty at the time of purchase, consider buying it before the standard warranty expires.


Compare a Hybrid to a Conventional Car


Buy That New Car and Control Your Budget

Do you still think you need that new car?  The chart above is a good illustration of how much one would spend on either a conventional car versus a hybrid, plus the difference in gas mileage.  It also shows how a budget will be affected by the purchase of a hybrid. The extra money you could save every month for purchasing a conventional car would look great in your savings account.

Finding A Credit Counselor

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Reputable credit counseling organizations advise people on managing money, bills and debts, help them develop a budget, and usually offer information and workshops. They should evaluate your entire financial situation with you, and help you develop a personalized plan to get you on the right track. Debt consolidation, debt settlement and credit counseling are often better options than bankruptcy. Input from a trained professional can help guide you in the best direction for your individual situation.

Finding reputable credit counselors has become more convenient. New laws requires credit card issuers to include a toll-free number on their statements that directs cardholders to information about finding nonprofit counseling agencies.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, look for nonprofit credit counseling programs. Just as with any other venture, the more educated you become, the better choices you will make for yourself and  your finances.

Save Your Money

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Saving money is one of the single most important steps to achieving most of your financial goals in life and becoming financially sound. The sooner you begin to save, the better of you will be. Having a savings in place can also serve as a form of protection during a financial crisis such as job loss, unexpected medical expenses, death of a family member, etc.

A savings serves as your cash reserve or safety net when you need it. The key is to have it in place before the need arises. At the core of building adequate savings is debt avoidance.

You should try to save a minimum of 10 percent of your take home pay in addition to your retirement planning contributions. If you do this on a regular basis, you will become used to it and accustomed to living below your means. If you are able to save more then 10 percent, do it!

Also, you have 3 to 6 months worth of expenses saved up as your emergency fund. This amount includes all expenses, fixed and unfixed. For example, if in January you spent a combined total of $2500 on your mortgage, car loan, home utilities, insurance, food, credit card bill, and other expenses, then you would need to save three times that, or $7500 at the minimum.

Unfortunately, most people live paycheck to paycheck with little or no savings. Work to build your reserve as fast as possible. Consider automating your savings. Most payroll providers provide an auto transfer feature directly to your savings when you get paid.

Start saving as early as possible. The amount doesn’t matter in the beginning. Just start some place and be consistent. Condition yourself into not missing or needing that amount. Over time, your savings will grow due to your diligence. View your savings as another bill that has to be paid. Once you pay off a line of credit (car note, credit card, or mortgage), continue to pay that same amount toward your savings.

Before you know it, you will have the protection you need on the event of an emergency. By building your savings now, you will have a larger nest egg available when you need it.

DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt.  Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email contact@dmcconline.org.

Start Fresh After Bankruptcy

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Getting back on your feet following bankruptcy can be a very difficult task. You’ll be starting from scratch. It’s critical to your future financial success to make sure you don’t make the same mistakes .

To ensure you make a “fresh” start, you need to think and analyze your previous spending habits. What really lead you to go bankrupt? Analyze your expenses, the way you handle your money and of course your lifestyle. Do you have to live a lavish lifestyle? And the major question is can you afford that kind of living? What are your major purchases recently? Asses your situation, and the causes that made you experience bankruptcy.

After that, make a plan on how recover and live without going into a financial difficulty. The primary thing that you have to do is to reestablish your credibility, especially to financial institutions. You must regain a good financial standing status. Start to build up resources. Save your money and put it to good use. Don’t splurge on extravagant items. Keep in mind what drove you to bankruptcy, your too much spending attitude. You have to change the way you regard your expenses.

If you use a credit card, be sure to pay on time, in full. Make sure also that when using credit cards, it’s for emergency purposes and not for luxurious items. Keep only one or two credit cards. A lot of credit cards may lead to temptation. You don’t want to end up into the same situation again. Having a savings account is also a good option because it means less reliance on your credit card purchases. You’ll learn how to set aside cash in your account for large purchases.

Budgeting is also very important because it teaches you on how to manage your money. Stick to your budget!.

Some lenders are willing to offer housing loans to people who have declared bankruptcy. If you find a financial company to hold your home mortgage, make sure you pay them promptly. Prove to them that you’re worth their risk.

Bankruptcy can bring stress to your life, but there is a lesson to be learned. You’ll know now how to deal with your monthly expenditures. Your spending habits will change for the better and you’ll live a life without worries. Keep in mind, it’s fine to have debts as long as you know how to manage your resources and pay your creditors.

Have a Teen Driver? Learn How to Save Money on Insurance

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Did you know that adding a teen to a car insurance policy could increase premiums from 100 percent to 355 percent, even if the teen is just driving the family minivan?

There are several different ways to get lower premiums for your teenagers. Many insurance companies offer online tutorials that they can take and, if passed, companies will provide substantial discounts. For example, State Farm has an online tutorial called Steer Clear and if the new driver passes it, State Farm will give up to a 15 percent discount to first time drivers. Many other insurance companies have similar online programs that offer discounts for teens. Esurance, an online car insurance company, gives discounts every six months for clean driving records.

According to Statefarm.com, here are a few insurance tips for teen divers and their parents.

– Call around to different companies and compare prices with discounts that best suit your needs.

– Be aware that your insurance rates typically increase when a new driver is added to the policy. If you are not adding a new vehicle to the plan, it is best to have the teen as a primary driver of one of the family cars.

– Take advantage of student discounts. In most states, students at accredited high schools, colleges and universities can get discounts if they have a grade point average of a B or higher.

– Talk to your teen about safe driving habits and how traffic violations can increase their rates.If you are planning to buy a brand new car for your teen, you may want to check which vehicles get the best rates.

Most Insurance Companies use three different ways to rate cars in terms of damage, safety and liability.

1. The Damage and Theft Index (DTI), rates vehicles on the cost of payment for damage and theft.

2. The Vehicle Safety Discount (VSD), awards discounts up to 40 percent for car models that generate lower payment for injury to occupants in the vehicle.

3. The Liability Rating Index (LRI), rates vehicles on the amount of damage and injury it causes to the other vehicle and its occupants.

-Consider getting a Personal Liability Umbrella Policy (PLUP). If you or your teenage driver accidentally injures someone or damages their property, you could be sued. Even though your underlying policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits.

There are many different areas insurance companies look into while quoting you a premium for you and your teen. Companies will look at what kind of deductible you want, the kind of car you drive, the areas you drive in, the amount of time you are on the road, your age and gender, your driving record and even your credit history. So if you live in a major metropolitan area with high auto theft rates, chances are good that your rates will be much higher than those who live in the suburbs with low auto theft rates.

Here are other ways to save yourself and your teen some money when buying car insurance.

– Most companies give an Anti-Theft Device Discount for cars that have car alarms and other forms of security.

– If you have ever been convicted of a moving violation or have been an in accident, take Driver Improvement Courses to improve your chances of having a lower rate. Many of these courses can be taken on the Internet now.

– Teens can get discounts if they complete a Drivers Education course through their school or accredited agencies.

– Vehicles that have airbags, anti-lock brakes, head restraints and day-time head lights can also get you a discount on car insurance.

Everyone knows that car insurance can be really costly, but there are ways to slash the price if you ask about them.

Deal With Your Debt

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If you are one of the millions of Americans out of work, and your cash flow has been impacted dramatically, there are several things you should do especially if you are carrying large credit card balances.

If you know you will be going delinquent on your payments, you should stop using your credit cards immediately, except for one that you will need in case of emergency.

It’s important to contact the remaining credit card companies to let them know your situation and that you will need some relief from your payments due to your employment situation. In the current economy, there are thousands of people defaulting on their credit cards and going bankrupt. When you show that you want to do the right thing and work with the issuer to come up with a solution to your problem, the issuer generally will do all that they can to help you.

Your creditors may suggest that you work with a local credit counseling firm. This is in their interest because those companies receive a portion of their fees on an annual basis from the issuers, along with whatever fee you would be paying them for their service. Asking them for a settlement probably won’t be helpful, they generally do not do this until you are severely delinquent and they have exhausted other resources, such as consumer credit counseling.

The important thing is to get in front of your debt problem. Don’t wait until you are overwhelmed. By that time your choices become more limited, you will most likely be recieving numerous collection calls, and maybe even threatened with lawsuits.

You are more in control than you might imagine if you start early, recognize the problem and deal with it.

Credit Report A Factor In Hiring

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We’ve come to accept that our credit history will be pulled and checked if we want to borrow money. That’s fair enough. We’ve begrudgingly accepted that insurers set car or home insurance premiums in part based on how customers handle their credit.

A growing number of people affected by record joblessness and foreclosure rates nationwide now have a new worry: Will bad credit keep me from getting the job?

Regarding the use of credit background checks for employment, supporters say the checks are a smart business tool for certain industries and critics counter that the reports unfairly discriminate against minorities and those affected by the recession.

With millions of Americans nursing damaged credit reports after a bruising recession, some lawmakers are seeking to limit the use of credit reports as a factor in hiring.

According to The Fair Credit Reporting Act, employers are required to receive written authorization from an applicant to run the report and then must provide that person, or employee, with a copy of the information.

But, do workers with money troubles have a propensity to steal from their employers? If a person has lousy credit, is he or she is more likely to embezzle money or accept bribes? There is insufficient data to support a correlation between a credit score and job performance and risk.

Certainly there are some jobs where it does matter how an employee or applicant handles money. Some employers are required to pull a credit report if an employee is going to handle cash or work in a financial services position. At least that makes sense.

The assumption that is made is, if somebody is behind on their bills, then it tells something about their integrity or responsibility, but in many cases that assumption is flawed.

This trend of employers digging into people’s personal finances is something we should be challenging and restricting.

Foreclosure Prevention Workshop

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WHEN: August 10, 2013 – 9AM to 3PM

WHERE: Pompano Civic Center, West Banquet Room: 1801 NE 6th St Pompano Beach, FL 33060

WHAT TO EXPECT: Learn your options to avoid foreclosure. Speak One-on-One with a Certified Housing Counselor

and available lenders : CHASE/ WELLS FARGO/ OCWEN / OTHER SERVICERS. Open to the Public. Call to Register  866.618.3328

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Should You Refinance?

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Interest rates have fallen so much, it may seem like a no brainer to refinance your home mortgage.

The decision to refinance your mortgage isn’t one that should be taken lightly. Before deciding, you need to understand all that refinancing involves. Your home may be your most valuable financial asset, so you want to be careful when choosing a lender or broker and specific mortgage terms. Remember that, along with the potential benefits to refinancing, the interest rate isn’t the only thing to consider when shopping for a new loan. Refinancing, after all, isn’t free. There are the bank fees, the bills for a new appraisal and inspection, your lawyer’s fee, etc.

When you refinance, you pay off your existing mortgage and create a new one. You may even decide to combine both a primary mortgage and a second mortgage into a new loan. Refinancing may remind you of what you went through in obtaining your original mortgage, since you may encounter many of the same procedures–and the same types of costs–the second time around. It requires an application, credit check, new survey and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive.

Age is another consideration. Carrying a mortgage into retirement has traditionally been viewed as a bad idea – ideally, you should be as debt-free as possible when your income stops.

As a rule of thumb, it pays to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Make sure to carefully weigh the benefits against the costs to make the best choice for your situation.

DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt.  Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email contact@dmcconline.org.

Ways To Build Your Financial Future

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You’re just out of college, starting your first job. Building long-term financial security is probably the last thing on your mind. But. young people just entering the workforce must not underestimate the importance of financial planning geared toward saving for the future.

One of the best deals is an employer-sponsored retirement plan such as a 401(k) plan, if available. These tax-advantaged plans allow you to make pretax contributions, and taxes aren’t owed on any earnings until they’re withdrawn. What’s more, Roth-style plans allow for after-tax contributions and tax-free withdrawals in retirement, provided certain eligibility requirements are met. Another big plus is direct contributions from each paycheck so you won’t miss the money as well as possible employer matches on a portion of your contributions.

If you’re already participating, think about either increasing contributions now or with each raise and promotion.

If a 401(k) isn’t available to you, shop around for individual retirement accounts (IRAs), both traditional and Roth, at banks or mutual fund firms. Generally, contributions to and income earned on traditional IRAs are tax deferred until retirement; Roth IRA contributions are made after taxes, but earnings thereon can be withdrawn tax-free upon retirement. Note that certain eligibility requirements apply and nonqualified taxable withdrawals made before age 59 1/2 are subject to a 10% penalty.

Teach Children Early About Money

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Just as with many other life lessons you will teach your kids, it is important to instill sound money management principles in children. As you attempt to instill other good habits in your youth, do not ignore a vital ingredient: financial awareness. Many children grow to adulthood, lacking the skills and ability to handle money. This can lead to years of unhappiness and hardship.

When teaching your children about money, begin early. The sooner your children develop awareness, the better they will understand the realities of the financial world.

It should go without saying, but your best bet is to lead by example, practice what you preach. You must display financial soundness. Whether you  realize it or not, your children pay close attention to what you say and do. Chances are they will model their behavior after yours.

Save gift-giving for special occasions. Though generosity may seem like a good quality, dumping extra money into their hands, without adherence to a budget, can send mixed messages.

Allow children to control their own discretionary spending. If a child is to learn about money, he or she must sense some meaningful connection to it. Though the parents should advise their kids on sensible spending and saving, they should not dictate how their offspring handle their earnings. The decision should be theirs, on how money received is to be spent, or saved.

If there’s one common mistake when it comes to raising financially responsible children, it is an inability of many parents to properly regulate their own financial lives. Prior to the age of about twelve the average child lacks exposure to finances, except for whatever involvement the parent or guardian generates. Regardless of your own current situation, the way you handle your finances is critical in securing the future financial success of your children.

SLW Centennial Allied Health program teaches financial literacy to students

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PORT ST. LUCIE — Recently, Governor Scott signed a bill mandating that high school students complete financial literacy training prior to graduating. Students from Mrs. Durkee and Ms. Higgins’ Allied Health Assisting classes at St. Lucie West Centennial High School in Port St. Lucie were ahead of the trend once again this year. Since 2007 these teachers have included this program into their curriculum providing their students an edge and making sure they had financial literacy education before they went to college.

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DMCC Publishes Personal Budgeting Guide for Consumers

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Debt Management Credit Counseling Corp (http://www.dmcconline.org), a nonprofit organization, announces new educational booklet to help consumers prepare a monthly budget. DMCC also provides personal budget counseling and debt management plans to consumers nationwide to lower their interest rates and monthly payments on credit cards, payday loans, medical bills and collection accounts.

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New financial literacy requirement for students could be a boon — literally

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BY FRANK CERABINO – PALM BEACH POST STAFF WRITER

It turns out that when it comes to “financial literacy” I am, well, semi-literate.

I learned that this week while taking an online financial literacy course offered by the Debt Management Credit Counseling Corp., a Broward County-based nonprofit company that educates state workers, college students and high school students on understanding money management and the financial world we all live in.

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Thrifty Spending Issue 102

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FEATURE ARTICLE:  The IRS is giving taxpayers impacted by the Boston Marathon bombing an additional three months to file their taxes.

The extension automatically applies to anyone who lives in Suffolk County, Mass., which includes Boston.

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MONEY SAVING TIP:  Cut your food budget in half

We all lead busy lives. And it’s too easy to throw money at “quick” food solutions because we’re too tired to figure out a better way to function. But the food budget is the single easiest way to reduce expenses and derive more satisfaction out of everything you eat.

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DID YOU KNOW…that your weight could determine the price of your plane ticket?

Samoa Air has begun charging higher fares for heavyset people, stating  such a system is not only fair but the future for other airlines.

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Saving On Your Homeowners Insurance

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As with any insurance purchase, it is important to evaluate coverage and research your options to find the best coverage for your dollar. Here are some tips from the National Association of Insurance Commissioners (NAIC) to help you save money on your homeowners insurance.

Shop Around

Homeowners insurance can be costly, but it is necessary. The premiums charged for homeowners insurance can vary widely from company to company, so it pays to take the time and effort to shop around to get the best value for your insurance dollar.  The cost of homeowners insurance depends on a number of factors including location, age and type of building, the use of the building (i.e. residence and/or commercial enterprise), local fire protection, choice of deductibles, application of discounts, and the scope and amount of insurance coverage you purchase.

Stick With the Company That Offers the Best Deal

Once you have considered all of the alternatives and have chosen the company that fits your needs, consider multiple policies with that company.

Change Your Deductible

In choosing the deductible amount, you bear the burden of loss up to the  amount you feel you can afford. Deductibles save money because the first dollars of the insurance are the most expensive to buy. Contact your insurance company to see if they offer higher deductibles, such as $500 or $1,000 on your homeowners insurance coverage.

Pay Attention to Rebuilding Costs Versus Actual Land Value of the Home

Consider the home and its contents when pricing the value of a Homeowners Insurance policy, not the land beneath the home. The property itself is not at risk of theft, fire or other hazards covered under your homeowners policy. Adding the land value could increase your premiums.

Discount Opportunities

You should also check with your insurance company to see if they offer premium discounts for the use of dead-bolt locks, smoke alarms, fire extinguishers, sprinkle systems and security systems.

Build a History with the Same Insurer

If coverage remains with the same insurer for 3-5 years, some companies offer up to a 5% discount plan for these long term consumers. After 6 years of coverage, a consumer may find up to a 10% discount. It is important to periodically compare the price with other policies, but the history benefits may be enough to reduce the premiums.

Actual Cash Value vs. Replacement Cost

Actual cash value coverage, as the name implies, will reimburse you for the cost of the property (less depreciation) at the time of the claim, minus your deductible. This may result in a lower claim payment than you expect. Replacement cost coverage, on the other hand, will reimburse the full value of the property. While the up-front cost is greater, you are more likely to receiveaccurate compensation for your possessions.

Better Business Bureau
U.S. Department of Housing and Urban Development
National Industry Standards for Homeownership Education and Counseling
Bureau Veritas
FCAA
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