It's The Little Things. When kids get into the first grade, they are introduced to coins. They are taught their amounts, how to count coins, and what combinations of coins equal a dollar. Addition and subtraction are also studied, and the beginnings of multiplication and division are explored. But learning these things doesn't actually help them UNDERSTAND money, and its uses. You can help. By giving them "play money", and talking to them each time you take them to the grocery or other store about how to decide which items they want and how much money they have to spend on those items, sets the pace. Just like in every-day life for us grownups, they will have to put things back and make good decisions. Be prepared for some tears and upsets, but it is all done in the spirit of learning. Encourage the kids to use their play money at home playing "store" as well.

Allowances. A weekly allowance, especially for doing chores, is a great way to get kids into the spirit of budgeting and saving. An allowance of $5.00 per week, as an example, for doing a series of chores to help out around the house provides a rich medium for kids to learn that there is "no free lunch" in life. No matter what "chores" you give them to do, it is important to keep a chart of their progress, and give out "stars" for completing tasks. Have a savings "piggy bank" of any type where kids need to deposit their allowance. It is important that they cannot retrieve it at will, so they get into the habit of socking it away for the future. Be sure to give them the allowance in small denominations so they have to count it out to be sure of how much they have. Keep a chart with them of their savings, just like a passbook at the bank, so they can keep track of their funds. Saving up for a big purchase can be an exciting lesson.

Needs Versus Wants. Kids, like many adults, want everything they see. All you have to do to confirm this is to spend an hour watching TV with them. Almost every commercial aimed at kids causes them to say "I want that". It is the same in life. But we can't always afford what we want. Hopefully, we can afford our "needs". Teaching kids about the necessities is a hard lesson for them…remember, they have been given everything up to this point with no consequences, so this is a very hard thing to grasp. Needs include: water, food, shelter, clothing. Kids will think that the fifth need is "toys". But you can explain that one! School supplies, lunch money, participation in after-school sports, ballet lessons…these are all needs that can be met after the basic needs are met. Consider "matching" what they save in some way, such as they save $20, and you give them $5 to add to it. In this way, a child may save $300 in a year.

Donna Perkins

Teenagers And Money. Today, teenagers want everything. A cell phone, an IPad, an IPod, GameBoy, WII, concerts, and internet games. Money is a part of that. They also want the clothes and accessories that help them feel a part of the group, and cash to spend extemporaneously when they are with their friends. Today's harried and hectic parents just want to throw cash at their kids and move on. But this practice can lead to uncontrolled spending, and some startling bills. Giving a teenager a prepaid card is a good way to limit their expenses. Sit down with them and make a budget for a month, and let them see what kinds of things can be purchased within their budget. Are you going to give them $50 or $300 each month? What will you allow them to use the card for, versus those things that you pay extra for on their behalf (like concert tickets). Make sure that they understand that a prepaid card is an advance on their allowance, and there are chores that must be performed in order to earn those deposits. If you skip this step and do not make them accountable, there will be war at home. Of course there will always be the un-planned-for expense. Just like for us parents. But these can be minimized by sitting down with your teenager and discussing the upcoming month's activities. At the end of the month, when the statement comes from the prepaid card, be sure to sit down with your teenager and go over the list, so he/she can learn from the experience.

If you are concerned about how to teach your kids the basics of money management, please give us a call.

As a responsible parent, it is important to teach your kids about the wonders and pitfalls of money management. But if you are in financial trouble yourself, how do you teach your kids anything that will have meaning for them? Remember, just because you are having temporary financial troubles, does not mean that you don't know what needs to be done. Teaching them will also remind you of the best ways to handle money issues. Here are some ideas to help keep them safe:

What About the College-Aged Kid?  When a child is in college, the parent loses much more control over the spending issues…especially if the college student is motivated to earn their own money by working part time. If a parent has done a good job with the teenage phase, then this will not be so hard. A prepaid card can also work in this situation, but it is no longer an "allowance" unless they are living at home. If you are going to provide a credit card to your college student, be sure to teach them responsible credit card use. Although college kids have opportunities to open their own credit cards, make an agreement with them to assist them by having access to the online account so you can keep tabs on the spending and catch problems before they become catastrophes. If your college student has activated his own cards without you co-signing for them, then be sure that he/she gets a regular monthly credit report from a service. Sit down at least once per quarter and show them the effects of their financial choices.

Protecting Your Child's Credit.  "Monitor your mail, and be suspicious if materials such as offers for pre-approved credit cards show up in your child's name. Suspicious credit documents could be cause for alarm. Monitor your child's online activity, particularly if your child is frequenting social networking sites and/or chat rooms, and making online purchases. Educate your child about the importance of keeping personal information, such as last name, address, etc., private when sharing information online. Educate your child about unsolicited email scams – "phishing" emails – that ask for personal information. Be sure that your child knows to delete fraudulent emails of this sort. Don't allow children to carry their Social Security cards in their wallet or backpack, and don't carry them in yours. Instead, retain ownership of these cards, and keep them in a safe place."…Experian Credit Education

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Watch for Part Two in this series.

Consequently, my own son who is 42 and has two children, has thought long and hard about these issues.  In fact, he has already arranged for my burial plot!  LOL!  But he learned the value of saving, of putting something aside for the future, and hopefully your children do as well.

Today we're mostly discussing the importance of parents talking to children about money, but it’s just as important for adult children to engage their parents in this discussion. If your parents, or a single parent, are entering their golden years, it may be time for you to have that conversation about money.  He/she may have debt that needs disposition.  But even more frequently, our precious elders are prey in an ever increasing game of money.  You want to talk about lots of things with him/her, including:

• Have a budget based upon income, and do not exceed that in expenditures.  As a retired person, they may not have the opportunity to earn more to pay off those debts.
• Stick to the budget at all costs.  It would be better for them to borrow a bit from you for an emergency situation than to incur lots of debt.
• If your loved one can no longer make sense of the check book, it may be time for you to handle that for them.  Nothing is worse than turning their checking account over to a clerk at the nursing home and have them decimate your loved ones finances.
• Budget a set amount for charitable gift giving, and be sure to stick to that figure.  One of the biggest problems for seniors is watching TV all day.  Because of that, your loved one may be susceptible to scams, religious zealtry, home shopping, starving children…you get the picture.  Gift giving is appropriate…but help your senior distinguish between their set commitments and what they see on TV or receive in the mail.
• Put something away for the end of live expenses.  If you loved one has not yet made a commitment to pay for their funeral expenses, now is the time to set something up.  In this way, your family is not financially decimated when that event occurs.
• If your loved one has ongoing debt left over from previous situations, help them decide upon a course of action and run with that.  Doing nothing does not help the situation, and your loved one will be harassed by creditors which can cause health and mental problems for them.

Donna Perkins

Your loved one may not wish to have this credit and debt conversation.  You must be patient, but firm.  It needs to be done for the long term health of your relationship with them, and with your own immediate family.  Submitted by Carole Carlson.

Call us soon to help you make choices for your loved ones, and deal with any credit or debt issues that are lingering.

Happy Fathers Day!

 

I'll bet you didn't know those collector calls can mean gold for you.  It is probable that one or more collectors are violating your rights.  The only way to prove that and make a case that we can work with is to keep good records.  By keeping accurate records of these calls, and in some cases letters you get, we may be able to sue your creditors and obtain some penalty fees for you.

You can help yourself protect your rights if you keep a record of those calls.  This can be accomplished in one of two ways:

1)  write it down on a log.  Keep this information on the log:  name of caller, company he/she represents, time of the call, start and stop time of the call, what was said during the call, especially if abusive language, threatening language, or untrue/unfair statements are made.  Note the call back number if your phone shows it.

2)  record the call.  Discover whether your phone system or cell phone can record calls, then be sure you hit the record button at the start of the call.  If necessary, have the person repeat what might have been missed at the beginning of the call while you were recording it.

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3)  be sure to mention you are recording the call, as required by law.

Keep those records in one place.  When it comes time to do something about it, call us and one of our Credit Concierges(tm) will discuss with you the next steps.  When creditors or collectors violate your rights, it is possible that we can obtain some money for you.  It's about time!

Be sure to ask about our Debt Negotiation services, and our debt relief program for total debts over $20,000 and up to $300,000, including business debts that were signed for personally.

If you paid cash for everything, you would have no credit history.

If you have no credit history, you have no credit!

Use of credit is important to developing a great credit score. But you must follow the guidelines for keeping it great, which include:

1) keep your debt-to-credit ration under 30% per card

2) pay your bills on time, every time

3) pay every bill, every month it is due

4) don't ask for more credit than you can afford.

By following these guidelines, you will develop the best credit history possible.

Donna Perkins

And remember…as your income rises, more credit is appropriate. But be selective, and be sure not to overdo it.

Our professional Credit Concierges(tm) can help you with understanding these concepts. Call us today!

It is important to understand the differences between the types of bankruptcy filings, and how each affects you. The two most often utilized are:

Chapter 7: Chapter 7 is the most desired type of bankruptcy. In recent years, bankruptcy laws changed to disallow many people from getting this type of bankruptcy. That is because in a Chapter 7 proceeding, all of your debts are discharged without payback. Now there are stringent laws that regulate who can qualify. It is difficult to qualify without having a business involved. Your income must fall within a narrow range, and your hardship has to be approved by the court.

Chapter 13: Chapter 13 is the alternative to Chapter 7. In fact, many people who file themselves rather than seek the help of an attorney, find once they get to court that the judge disallows Chapter 7 and grants Chapter 13. You do not have a choice.

So it is very important to have experienced legal representation before you get started. A trained attorney knows how to help you qualify if you can for Chapter 7, and if not, goes over your options with you before you get into the courtroom and receive the sentence of Chapter 13.

Donna Perkins

We work with a nationwide group of attorneys who specialize in this subject, and for a reasonable flat rate, will take your case. We will pair you with a network attorney close enough to you to be able to drive to his/her office. Call us anytime for a free consultation.

The consumer walks into a shop or goes online, and secures a small loan against their next paycheck.  Some requirements need to be met such as proof of a job, etc.  The borrower is required to give the Pay Day Loan company a post-dated check for the repayment amount.  If the borrower does not appear on the correct day with the funds, the company can cash the check.  If funds are not available, then the consumer faces additional charges like bounced check or insufficient funds fees, etc.  In many cases, the company has penalties for not paying the loan back on time, so the fees and charges keep piling on the consumer.

The problem with pay day loans is “usury”.  Usury simply means an unreasonable and excessive rate of interest.  In the United States, this type of loan is prohibited in some areas, and regulated in others.  And in many other areas, especially in the Tribal Lands areas, no regulations or very little are required.

If a consumer really needed a cash infusion of say $100, and truly intends to pay it back when they get their next check, then this practice can make the difference between getting medical help, and other such catastrophic uses.  But what happens all too often is the consumer does not pay the $100 back in the timeframe they intended. 

Let’s look at a typical scenario for that $100 loan.  If the cost is $15 for a two-week loan, then figure the annual percentage rate this way:  52 weeks in a year divided by 2 because it is a two-week loan period.  26 weeks times 15% ($15 is 15% of $100) = 390% annual percentage rate.  If the consumer pays the loan back within a month, plus the cost, then the interest rate can be 15-30%.  However, the longer it takes, the more interest.

This type of loan is considered predatory.  However, there usually is no collateral…it is considered an unsecured loan.  Therefore, a percentage of people default on these types of loans.

So what do you do if you have one or more pay day loans right now?  The interest you are paying continues to accrue, and you can’t get ahead.  We have an answer.  Pay Day Loan Consolidation.  The company we work with has an excellent reputation for solving these types of problems.  Once you enroll  with no up-front fees required, the company goes to work on your behalf.  They negotiate with these lenders to reduce by up to 600% the interest rates you are paying, and in some cases, get the interest rate down to zero.  They also get your monthly payments reduced.  Then they consolidate all these loans into one payment to make it easier for you to be sure you make this new payment on time.  The cost for the program is low, in order to help as many people as possible get out of this situation.

The benefits of consolidation can be felt almost immediately, including:

• Pay Off Debts Quickly
• No Minimum Financial Requirements
• Improve Credit Ratings
• Dramatically Lower Interest Rates
• No Waiting Period to Get Started
• Stop Late Fees
• No Hidden Costs
  

  Donna Perkins

Why not contact us today to find out how this program can assist you in ridding yourself of these types of loans.  Click here.

Business owners can build an exceptional business credit profile for their business, qualify for buisness credit, and be approved for business funding as high as 25 million dollars.

Take a look at a few of the endless benefits the business credit and funding suite provides:

• Over 30 Core Funding Products Available
• Access to SBA Loans, Credit Lines, Purchase Order and Account REceivable Financing, Revenue Lending, Merchant Advances, Inventory and Equipment Financing, 401K and Securities Financing, Property Rehab Financing, and much more.
• Business Crediibility Check to Insure Credit and Funding Approval
• One-Click Funding Applications
• Easy Step-by-Step System to Build Excellent Business Credit
• Access to Hundreds-of-Thousands of Dollars in Business Credit
• Access to Business Credit Cards Including Staples, Lowes, Home Depot, Costco, Wal-Mart, Sam's Club, BP, Master Card, Visa, other $10,000 Credit Cards in your Business Name, and More
• Business Credit Available with No Personal Credit Check and No Personal Guarantee
• Interface With Business Credit Reporting Agencies to Monitor Business Credit Building in Real Time
• Free DUNS Number
• Free Experian Smart Business Credit Report
• Access to Certified Business Credit and Funding Advisors
• Access to Business Workbooks to Help Start a Business and Obtain Angel Investor Funding
  

  Donna Perkins

Contact us today to learn more about the business credit and funding you already qualify for.

Business credit is a wondrous thing.  Most people don’t understand just how wondrous it can be!  Business owners can build an exceptional business credit profile for their business, qualify for business credit, and be approved for business funding as high as 25 million dollars.

Don’t have a business?  It’s easy to start one.  Of course, you will need to have some history before the larger dollar funding sources will take a look at your business, but you can still get up to $50,000 is new credit lines for your business inside of a year…with NO personal guarantee, and NO personal social security number!

By signing up with KC Credit Services Business Division, we take you through all the steps necessary to make this a reality.  You will have access to over 2,100 financial sources, over 30 core funding products availability, and access to:

• SBA Loans
• Credit Lines
• Purchase Order and Account Receivable Financing
• Revenue Lending
• Merchant Advances
• Inventory and Equipment Financing
• 401K and Securities Financing
• Property Rehab Financing
• And much, much more

The Company will provide a business credibility check to insure credit and funding approval.  There is a one-click funding application process, easy step-by-step system to build excellent business credit, and access to hundreds-of-thousands of dollars in business credit.

You will have access to business credit cards, including Staples, Lowes, Home Depot, Costco, Wal-Mart, Sam’s Club, VP, Master Card, Visa, other $10,000 credit cards in your business name, and more.  Business credit is available with NO PERSONAL credit check, and no personal guarantee.

The Company provides an interface with business credit reporting agencies to monitor business credit building in

Donna Perkins

real time (not available with any other system!), a free business account number with Dun and Bradstreet, and free Experian Smart Business Credit Report. They provide access to Certified Business Credit and Funding Advisors to help you every step of the way, and access to workbooks that help start a business – and better yet – obtain Angel Investor Funding!

This affordable program can be tailored to suit your ability to pay for it, as well.  Ask us how!

When you are single and apply for a credit card, house or car, you are the only one responsible.  You are the one that affects your credit score…nobody else.

When you decide to marry, or team up with someone to apply for joint credit, there are some interesting dynamics you should be aware of.  Everything that occurs, good or bad, affects both of your credit scores.

1)            You are responsible for 100% of the debt incurred when you share a card.  So if your “partner” decides to bail, you will still be responsible for paying the debt, whether you personally spent the money or not. 

2)            When you marry or have joint accounts, the actions that both of you exhibit affect both of your credit scores.  This is especially true in the lives of married couples. 

3)            If you co-sign on someone else’s debt, and the default, YOU will be left with the responsibility of paying the debt, even if you never benefitted from what was purchased. 

4)            For parents who co-sign for a child – say one who is starting college, this is especially troubling.  Parents would be better off making their child an “authorized user”.  This simply means that the child will have the ability to charge expenses on the card up to a certain limit set by the parents.  In this case, the parents can limit their liability.

5)            In the case of a married couple, given the 50%+ divorce rate these days, it may be better to keep most credit separate.  Perhaps only con-join your credit for a big purchase like a house.  In this way, the ownership and responsibility for the debt is never in question.  If you have everything joint, divorce court cannot help you.  Each of you is 100% responsible to repay the debts incurred…regardless of who ends up with the real property purchased. 

Donna Perkins

If your credit score is suffering, you can get help.  Credit restoration specialists are at your service to help you decide some of these troubling questions.  They can assist you in cleaning up your credit history so your score goes up naturally.  Why not call us today for a free consultation?  Your privacy is our utmost concern.  Click here…