Creditors call your house day and night. Some are rude and ask for a payment every hour on the hour. You can stop these harassing calls. Talking to customers in a rude and unprofessional manner is against the law according to the Fair Debt Collection Practices Act (FDCPA).
If you make one late payment, usually 30 days or more late, a creditor will call to remind you to send a payment, even if the payment is one day past the due date – unless the company offers a grace period.
A creditor cannot call you before 8:00 am or after 9:00 pm. Creditors cannot use threats, use profanity, make false statements, use unfair practices, or make repeated calls to your home to collect a debt.
If a creditor contacts you, as a consumer, legally you have the right to ask them to stop calling which is called "cease and desist" by writing a letter telling the creditor to stop contacting you by phone. You also have the option of having the creditor contact you by mail only which I strongly advice. Cutting off all contact with the creditor may anger the company and cause them to quickly take legal action against you.
If you are late on a payment, notify your creditor immediately that you are having financial problems and try to setup a payment plan with them to prevent the item from being reported on your credit report and to maintain a good relationship with the company.
If you feel a creditor has violated the Fair Credit Reporting Act you may file a complaint against them by calling the Federal Trade Commission at 1-877-FTC-HELP or visit ftc.gov to fill out an online complaint.
Sunday, November 21, 2010
Thursday, November 18, 2010
Tips for Estate Planning
An estate is property owned by you at the time of your death including: real estate, bank accounts, stocks, bonds, mutual funds, life insurance policies, and personal property such as cars, jewelry, and art. Estate Planning ensures that your property and health care wishes are honored, and that loved ones are provided for after your death. Estate planning can include wills, trusts, and health care directives.
According to Retirement Made Simpler, in 2009, women, younger and lower-income adults were less likely than men, older and higher-income adults to say they participate in a 401k plan offered by their employers. Approximately 53% of adults feel that even if their 401k account has lost value, it is as important to continue contributing to it. Here are some tips for estate planning.
Will Preparation:
1. If no will court decides who gets your assets
2. Living spouse and children get assets and if no children next to kin gets assets
3. Identifies who will take care of children and who manages will
4. Minimizes legal and court fees
5. Laws vary by state
6. No absolute right to estate
7. Signed by 2-3 witnesses
Living Trust:
1. Maintains privacy
2. Minimize gift and estate taxes
3. Can’t have trust without a will
4. Can put conditions on how your assets are distributed after you die
5. Covers only specific assets (life insurance, property, etc.)
6. Use if you have a net worth of $100,000 or more
7. Use if you want to maximize estate tax exemptions
For more information on estate planning visit moneycentral.msn.com/quiz/make-a-will-quiz/home.aspx or www.nolo.com/products/nolos-online-living-trust-NNTRUS.html.
According to Retirement Made Simpler, in 2009, women, younger and lower-income adults were less likely than men, older and higher-income adults to say they participate in a 401k plan offered by their employers. Approximately 53% of adults feel that even if their 401k account has lost value, it is as important to continue contributing to it. Here are some tips for estate planning.
Will Preparation:
1. If no will court decides who gets your assets
2. Living spouse and children get assets and if no children next to kin gets assets
3. Identifies who will take care of children and who manages will
4. Minimizes legal and court fees
5. Laws vary by state
6. No absolute right to estate
7. Signed by 2-3 witnesses
Living Trust:
1. Maintains privacy
2. Minimize gift and estate taxes
3. Can’t have trust without a will
4. Can put conditions on how your assets are distributed after you die
5. Covers only specific assets (life insurance, property, etc.)
6. Use if you have a net worth of $100,000 or more
7. Use if you want to maximize estate tax exemptions
For more information on estate planning visit moneycentral.msn.com/quiz/make-a-will-quiz/home.aspx or www.nolo.com/products/nolos-online-living-trust-NNTRUS.html.
Monday, November 15, 2010
More Car Recalls in 2010
Cars are not what they used to be. Cars used to last for 5 to 10 years without major defects or major problems. Nowadays you are lucky if you car lasts during the warranty. Think twice before trading in your old car for a shiny new one.
Last month there were multiple car recalls. Honda recalled approximately 500,000 cars with brake problems for the Odysseys and Acura RLs models from 2005 to 2007. Toyota recalled over 730,000 cards with unsafe brakes for the Avalon models from 2005 to 2006, non-hybrid Highlanders from 2004 through 2006, Lexus RX330, LXGS300, IS250 and IS350 from 2006.
BMV recalled over 150,000 cars because of potential problems with their fuel pumps. The problem affects cars with twin-turbo six cylinder engines with high pressure injection and direct fuel injection systems. The recall affects the 335i models from 2007 to 2010, 135i, 535i and X6 xDrive35I sports activity coupes from 2008 to 2010, Z4 roadster sDrive35i models from 2009 to 2010, MY 2008 X5 sports activity cars.
Here are 4 tips to help if your car is recalled.
1. Research. Find out what the process is to get your car fixed and if you will be compensated for the recalled part or for a rental car while your car is being repaired. Check the company's website to see if any information has been posted.
2. Call. Contact the car manufacturer directly to get accurate information on the model being recalled.
3. Status. Check on the status of your car repair frequently and document all phone calls with the car dealer and car manufacturer. Ask for a letter in writing from the car manufacturer stating what model what recalled and the process for addressing the recalled model.
4. Car Fund. Start creating an emergency car fund so if you have to get your car repaired you minimize the chance of going into debt.
Last month there were multiple car recalls. Honda recalled approximately 500,000 cars with brake problems for the Odysseys and Acura RLs models from 2005 to 2007. Toyota recalled over 730,000 cards with unsafe brakes for the Avalon models from 2005 to 2006, non-hybrid Highlanders from 2004 through 2006, Lexus RX330, LXGS300, IS250 and IS350 from 2006.
BMV recalled over 150,000 cars because of potential problems with their fuel pumps. The problem affects cars with twin-turbo six cylinder engines with high pressure injection and direct fuel injection systems. The recall affects the 335i models from 2007 to 2010, 135i, 535i and X6 xDrive35I sports activity coupes from 2008 to 2010, Z4 roadster sDrive35i models from 2009 to 2010, MY 2008 X5 sports activity cars.
Here are 4 tips to help if your car is recalled.
1. Research. Find out what the process is to get your car fixed and if you will be compensated for the recalled part or for a rental car while your car is being repaired. Check the company's website to see if any information has been posted.
2. Call. Contact the car manufacturer directly to get accurate information on the model being recalled.
3. Status. Check on the status of your car repair frequently and document all phone calls with the car dealer and car manufacturer. Ask for a letter in writing from the car manufacturer stating what model what recalled and the process for addressing the recalled model.
4. Car Fund. Start creating an emergency car fund so if you have to get your car repaired you minimize the chance of going into debt.
Friday, November 12, 2010
Organization is The Key to Filing Taxes
Every year Americans have to file their taxes unless they don't earn enough income to qualify having taxes taken out. There are tons of tools available to help prepare your taxes and determine if you will get a refund or owe money. Some of the most widely used tools are Turbo Tax, Tax Cut and Quicken.
One of the reasons many Americans end up owing taxes or miss out on claiming deduction is because their financial papers are not in order. Many throw away, misplace receipts or even falsify documents because the original document cannot be found.
Don't wait until the last minute, this year start early and gather all of your financial paperwork. You can use an automated tool to track your spending and deductions or use a piece of paper, or word processing software such as Excel or Access. Getting organized will help you to see right away what deduction you can qualify for.
Using a tax preparation tool has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 6 tips to help you get organized this tax season.
1. Gather. Gather all receipts, monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.
2. Automation. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.
3. Categorize. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (This can be found in the IRS tax manual by using the items identified in tip 2). If not (standard deduction is less than itemized deduction), use the worksheet included with your IRS tax booklet to calculate your itemized deductions.
4. Go Green. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.
5. Be Patient. Don't get a tax refund loan (rapid refund) or refund anticipation loan. You are charged a fee to get the refund loan which usually has high interest rates and associated fees. Save yourself time and money.
6. Free Filing. If you salary is less than $52,000 or less you can file your taxes electronically for free.
One of the reasons many Americans end up owing taxes or miss out on claiming deduction is because their financial papers are not in order. Many throw away, misplace receipts or even falsify documents because the original document cannot be found.
Don't wait until the last minute, this year start early and gather all of your financial paperwork. You can use an automated tool to track your spending and deductions or use a piece of paper, or word processing software such as Excel or Access. Getting organized will help you to see right away what deduction you can qualify for.
Using a tax preparation tool has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 6 tips to help you get organized this tax season.
1. Gather. Gather all receipts, monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.
2. Automation. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.
3. Categorize. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (This can be found in the IRS tax manual by using the items identified in tip 2). If not (standard deduction is less than itemized deduction), use the worksheet included with your IRS tax booklet to calculate your itemized deductions.
4. Go Green. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.
5. Be Patient. Don't get a tax refund loan (rapid refund) or refund anticipation loan. You are charged a fee to get the refund loan which usually has high interest rates and associated fees. Save yourself time and money.
6. Free Filing. If you salary is less than $52,000 or less you can file your taxes electronically for free.
Tuesday, November 9, 2010
How to Lower Heating Costs
This year's winter season didn't seem like a normal winter season where in some parts of the country temperatures were in the 70's and 80's even until the last week of October. For utility companies specifically the gas company, the winter season begins October 1 and ends March 31. According to the Energy information Administration the average American household will pay $27 more than last year due to a 6% price increase.
Approximately 52% of all U.S. homes depend on natural gas as their primary heating fuel. Approximately 7% of U.S. homes depend on heating oil and will pay approximately $220 more this winter. Approximately 6% of all U.S. homes use propane for heating and can expect to pay approximately $136 more than last year. Approximately 37% of all U.S. homes use electricity for heating and can expect to pay approximately $18 less this winter.
The national average price for heating with oil has more than quadrupled to 198% from 2003-2004 to 2008-2009. Here are 9 tips to save on heating costs this winter.
1. Yearly check. Have annual checks on your heating system such as your furnace before the winter season begins. It is best to get a checkup during the summer months when business is slow.
2. Insulate. Insulate your attic and any other areas that are drafty such as your attic, basement, ceilings, walls, crawl spaces, hot water pipes, furnaces, ducts, etc.
3. Automate. Install a programmable thermostat and keep your setting on 68% Fahrenheit. Lower the temperature setting while away from home and during the day. This can save 20% on your heating costs.
4. Seal drafts. Seal any drafts around windows, chimneys, pipes, light fixtures, doors or electrical outlets which can reduce your heating costs by 30%. Replace drafty windows if needed. Hang curtains to seal drafts from windows or place rugs at doors to keep air out.
5. Water Heater. Buy a home water heater insulator to keep the water hot longer and reduce the amount of gas needed to heat the hot water heater.
6. Clothes. Wear more clothes at home to prevent turning the thermostat up.
7. Let the sun in. Open blinds or curtains during the day to let heat in.
8. Use fans. Use ceiling fans and run in the opposite direction to circulate heat.
9. Cover floors. Carpet floors to retain heat and keep floors warm.
Approximately 52% of all U.S. homes depend on natural gas as their primary heating fuel. Approximately 7% of U.S. homes depend on heating oil and will pay approximately $220 more this winter. Approximately 6% of all U.S. homes use propane for heating and can expect to pay approximately $136 more than last year. Approximately 37% of all U.S. homes use electricity for heating and can expect to pay approximately $18 less this winter.
The national average price for heating with oil has more than quadrupled to 198% from 2003-2004 to 2008-2009. Here are 9 tips to save on heating costs this winter.
1. Yearly check. Have annual checks on your heating system such as your furnace before the winter season begins. It is best to get a checkup during the summer months when business is slow.
2. Insulate. Insulate your attic and any other areas that are drafty such as your attic, basement, ceilings, walls, crawl spaces, hot water pipes, furnaces, ducts, etc.
3. Automate. Install a programmable thermostat and keep your setting on 68% Fahrenheit. Lower the temperature setting while away from home and during the day. This can save 20% on your heating costs.
4. Seal drafts. Seal any drafts around windows, chimneys, pipes, light fixtures, doors or electrical outlets which can reduce your heating costs by 30%. Replace drafty windows if needed. Hang curtains to seal drafts from windows or place rugs at doors to keep air out.
5. Water Heater. Buy a home water heater insulator to keep the water hot longer and reduce the amount of gas needed to heat the hot water heater.
6. Clothes. Wear more clothes at home to prevent turning the thermostat up.
7. Let the sun in. Open blinds or curtains during the day to let heat in.
8. Use fans. Use ceiling fans and run in the opposite direction to circulate heat.
9. Cover floors. Carpet floors to retain heat and keep floors warm.
Saturday, November 6, 2010
Green Tax Tips for 2010
It's Tax Season. That dreaded time of year when you have to look through all of your receipts and try to piece together your spending for the year to file your taxes and hope you get a refund. In addition to the tax credits and usual tax benefits, you can also get tax credits for going green. Going green can qualify you for federal tax deductions for individuals as well as businesses.
Businesses that make changes in their appliances and products can get federal tax credits including those that recycle, buy recycling equipment, or use recycled materials. These can include items such solar water heaters which could qualify for a tax credit of 30 percent of the cost of the appliance.
Many state taxing authorities offer tax deductions and tax credits for going green to individuals. New legislation allows employers to give employees up to $20 a month for riding a bike to work. Employers can reimburse up to $230 per month of an employee’s public transportation expenses.
Solar homeowners and businesses can get tax credits for installing solar panels and solar powered water heaters. Solar water heaters may qualify for a tax credit of up to 30% of the purchase price. Improvements to a taxpayer's primary residence must be made before January 1, 2011. Here are 5 tax tips to go green.
1. Residential Energy Efficient Property Credit. This tax credit qualifies residential energy appliances such as solar hot water heaters, solar electricity equipment, geothermal heat pumps and wind turbines installed in or on the home and ends in 2016. The credit is 30% of the cost of home.
2. Plug-in Electric Vehicle Credit. This tax credit is for two types of plug-in vehicles: two- or three-wheeled vehicles or certain low-speed electric vehicles. The credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.
3. Residential Energy Property Credit. This tax credit is for homeowners who make energy efficient improvements to their existing homes. The credit is 30 percent of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, heat pumps and energy-efficient heating and air conditioning. The maximum credit is $1,500 for improvements placed in service in 2010.
4. Credit for Car Conversion Kits. This credit is for car owners who convert a vehicle to a qualified plug-in electric vehicle. This credit is 10% of the cost of converting a vehicle that is placed in service after Feb. 17, 2009. The maximum credit is $4,000 and ends in 2011.
5. Treatment of Alternative Motor Vehicle Credit. This credit allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax (AMT).
To claim the green tax credit you must file out Form 5695, Residential Energy Credits. Manufacturers must certify that their products meet the green standards and they must provide a written statement to the taxpayer in the product packaging or on the manufacturers’ website.
Businesses that make changes in their appliances and products can get federal tax credits including those that recycle, buy recycling equipment, or use recycled materials. These can include items such solar water heaters which could qualify for a tax credit of 30 percent of the cost of the appliance.
Many state taxing authorities offer tax deductions and tax credits for going green to individuals. New legislation allows employers to give employees up to $20 a month for riding a bike to work. Employers can reimburse up to $230 per month of an employee’s public transportation expenses.
Solar homeowners and businesses can get tax credits for installing solar panels and solar powered water heaters. Solar water heaters may qualify for a tax credit of up to 30% of the purchase price. Improvements to a taxpayer's primary residence must be made before January 1, 2011. Here are 5 tax tips to go green.
1. Residential Energy Efficient Property Credit. This tax credit qualifies residential energy appliances such as solar hot water heaters, solar electricity equipment, geothermal heat pumps and wind turbines installed in or on the home and ends in 2016. The credit is 30% of the cost of home.
2. Plug-in Electric Vehicle Credit. This tax credit is for two types of plug-in vehicles: two- or three-wheeled vehicles or certain low-speed electric vehicles. The credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.
3. Residential Energy Property Credit. This tax credit is for homeowners who make energy efficient improvements to their existing homes. The credit is 30 percent of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, heat pumps and energy-efficient heating and air conditioning. The maximum credit is $1,500 for improvements placed in service in 2010.
4. Credit for Car Conversion Kits. This credit is for car owners who convert a vehicle to a qualified plug-in electric vehicle. This credit is 10% of the cost of converting a vehicle that is placed in service after Feb. 17, 2009. The maximum credit is $4,000 and ends in 2011.
5. Treatment of Alternative Motor Vehicle Credit. This credit allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax (AMT).
To claim the green tax credit you must file out Form 5695, Residential Energy Credits. Manufacturers must certify that their products meet the green standards and they must provide a written statement to the taxpayer in the product packaging or on the manufacturers’ website.
Wednesday, November 3, 2010
How to Establish Business Credit
Two-thirds of new businesses survive at least two years, and 44% percent survive at least four years. Thirty-three percent of self-made millionaires are entrepreneurs. Now is a great time for entrepreneurs to start a business.
It is important to establish business credit when you are running a business because when you apply for business loans or credit, companies will look at your personal credit and your business credit profile to determine: if you will be approved, the amount approved, the terms of the approval and if you will have to give a personal guarantee. It takes about 6-9 months to establish business credit and up to 2 years to establish good to excellent business credit.
When you separate your business and personal credit it makes it easier to file your taxes. Opening a business credit card account provides a professional image for your company and ensures other businesses perceive you as a legitimate company.
There are only a few payments options available when making business transactions such as credit card, PayPal, debit card and checks. Business credit cards provide higher limits and higher rewards than personal credit cards.
Before applying for business credit and to ensure you are approved you will need: two years of financial statements and tax returns, one bank reference, and a good relationship with your local bank. You can do this by opening a CD for 3-6 months. Once it matures take the money out and open a small personal loan. Pay the loan back on time or before the loan end date. This helps establish a relationship with the bank. Now the bank will be more willing to approve you for a business loan or business credit card.
Here are 6 tips to establish business credit:
1. Open a business credit card or trade line with your business tax id to keep your personal credit and business credit separate such as Staples, Office Depot, UPS, FedEx, Office Max, Exxon, etc. You will need 5 trade references reporting to Dunn & Bradstreet.
2. You can apply for a business credit card with your SSN. However, if you make a late payment your personal credit is damaged.
3. Establish a business profile with Dunn & Bradstreet and get a Paydex score (business credit score).
4. Get a credit card with no personal guarantee. This ensures that if the business fails you are not responsible for any debt owed.
5. Get a secured business credit card.
6. Setup business credit reports with at least 3 agencies (Experian, Equifax, Dunn & Bradstreet, TransUnion, etc.)
It is important to establish business credit when you are running a business because when you apply for business loans or credit, companies will look at your personal credit and your business credit profile to determine: if you will be approved, the amount approved, the terms of the approval and if you will have to give a personal guarantee. It takes about 6-9 months to establish business credit and up to 2 years to establish good to excellent business credit.
When you separate your business and personal credit it makes it easier to file your taxes. Opening a business credit card account provides a professional image for your company and ensures other businesses perceive you as a legitimate company.
There are only a few payments options available when making business transactions such as credit card, PayPal, debit card and checks. Business credit cards provide higher limits and higher rewards than personal credit cards.
Before applying for business credit and to ensure you are approved you will need: two years of financial statements and tax returns, one bank reference, and a good relationship with your local bank. You can do this by opening a CD for 3-6 months. Once it matures take the money out and open a small personal loan. Pay the loan back on time or before the loan end date. This helps establish a relationship with the bank. Now the bank will be more willing to approve you for a business loan or business credit card.
Here are 6 tips to establish business credit:
1. Open a business credit card or trade line with your business tax id to keep your personal credit and business credit separate such as Staples, Office Depot, UPS, FedEx, Office Max, Exxon, etc. You will need 5 trade references reporting to Dunn & Bradstreet.
2. You can apply for a business credit card with your SSN. However, if you make a late payment your personal credit is damaged.
3. Establish a business profile with Dunn & Bradstreet and get a Paydex score (business credit score).
4. Get a credit card with no personal guarantee. This ensures that if the business fails you are not responsible for any debt owed.
5. Get a secured business credit card.
6. Setup business credit reports with at least 3 agencies (Experian, Equifax, Dunn & Bradstreet, TransUnion, etc.)
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