Settlemydebt's Weblog

debt management service

settlemydebt — Wed, 28 Nov 2007 21:34:59 +0000

Put your tax refund to good use

Reward yourself by following these money saving tips

So, it’s tax time. The good news is refunds are about 6 percent over this time last year. So far, the IRS has processed refunds for nearly 39 million taxpayers to the tune of $102 billion dollars. That works out to an average of $2,650 per refund. Sounds like a bundle? Well, one thing you need to understand about tax refunds is that they’re larger earlier in the season — that’s because people who know they’re getting money back have an incentive to file, rather than leaving their hard-earned cash in the coffers of Uncle Sam.

The big question is: What do you do with all that dough? My suggestion. Something good for yourself. Sure, you may feel a need (or at least a desire) to splurge a little bit. We’ll talk more about that in a minute. But just take a look at the good you could do for your life, your finances, your psyche or all three by taking any of the following suggestions:

Make an IRA contribution. For a while now, we’ve been telling people to file electronically and have their refunds direct deposited. This is the way to get money owed you back inside of two weeks. This year, for the first time, the IRS is allowing you to direct deposit your refund not just into a bank account, but into an IRA, a Roth IRA, a SEP IRA (for self-employed individuals), a health savings account or a Coverdell education savings account.
You can also split the refund and deposit it in a couple of accounts at the same time. To do this, you’ll need IRS form 8888, which is new, but like all forms available at IRS.gov. A couple of caveats. If you are using your refund to make your IRA contribution make sure you let the custodian of your account — the brokerage firm or bank — know what year the contribution is for. And if you intend the contribution to be for the 2006 year, don’t delay. If the refund doesn’t arrive until after April 17, it will only be able to be counted for the 2007 year. I am a huge fan of this. And here’s why:

EXAMPLE: A 30-year-old puts $2,650 in an IRA and invests it in stocks. The money grows at 8 percent a year. At age 65, it will be worth $43,175. Make the same contribution every year and you’ll have $531,434 at retirement.

Pay off debt. Think of it this way: When you use your refund to pay off debt at a particular rate — like 15 percent or 20 percent or 25 percent —and you get the equivalent of a 15 or 20 or 25 percent return on your money. The higher the interest rate you’re paying on your debt, the more it makes sense to use the money to pay it down.
EXAMPLE: Pay off $2,650 on a credit card charging 20 percent interest. Save $530 in interest a year. Start an emergency fund. An emergency cushion is KEY to staying out of debt. If you have savings you don’t have to charge it if the transmission goes, if your roof leaks, or when your quarterly insurance premium is due.

EXAMPLE: Put your $2,650 in a savings account earning 5.3 percent. Earn $140 in interest a year. Make an extra mortgage payment. Make one extra mortgage payment a year and you’ll cut the term of a 30-year fixed rate mortgage to roughly 24 years. That’s hugely helpful, particularly if you are going into retirement with a mortgage.

EXAMPLE: $2,650 is the mortgage payment on a $442,000 30-year fixed rate loan at 6 percent. Over the loan, pay $512,000 in interest. Make one extra payment this year (once) and you’ll save $12,000 over the life of your loan and shorten the term of your loan by five months. Make one extra payment EVERY year and you’ll save $104,000 in interest over the life of your loan and shorten the term of your loan by five years.

Do something for your psyche. $2,650 could pay for a course that refreshes your career skills, a year’s membership at a great gym, 18 to 20 sessions with a life coach, or a basic estate plan (including wills, basic trusts, healthcare proxy, living will and a sizable term life insurance policy). Making a contribution to charity is also great for your soul —givers tend to be happier people overall, whether they are giving money, giving time or giving away old things. Just remember that this year items that you give away have to be in good enough condition that you’d be equally likely to hand them down to a family member or friend.

Need a splurge? Split the difference. If you’re just dying for a few days on the beach, a spring wardrobe, a plasma television — well, chances are I’m not going to be able to talk you out of it. But maybe I can talk you into splitting the difference. $1,325 could: earn you $21,587 in an IRA by retirement; save you $265 in credit card interest; earn you $70 in a savings account; and make you feel like you did something GOOD with your money.

FINALLY. Change your withholding. This exercise is a lot of fun. But you’ll put more money in your pocket over the long haul by NOT giving Uncle Sam an interest free loan to begin with. So, change your withholding and then start automatically funneling an equal amount into your choice of savings vehicle — or to pay down your debt or your mortgage throughout the year rather than once a year.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and credit counseling. Having the combined experience as a licensed as a Real-estate salesman, Mortgage Broker, Real-estate Broker, notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokes person of the Radio talk show “The Money Mentor”; Greg McTaggart is qualified to help you. Christian Credit Counselors

Click Here to Schedule an Online Consultation with a Trained Counselor

Christian Credit Counseling • Debt Education Consolidation • Christian Debt Management • Bill Consolidation • Debt Management Service • Credit Card Counseling • Debt Management Solution

Credit Card Help Button!

San Diego Appraisals

Thank You
For A Free Consultation CALL: 1-866-767-9155

debt management program

settlemydebt — Tue, 06 Nov 2007 18:01:29 +0000

Credit Counseling and Family

Keeping your children busy on little or no money

If you’re in credit counseling or have signed on to a debt management plan, you may be concerned about how it will all work with your children while being committed to paying down your debt. Paying for gymnastics, swim lessons, baseball, or karate can really add up and it may not be part of your budget any longer. Having anxiety about it is normal, but you don’t want to pass it on to your children, no matter what their age. Worry no more! Not all activities cost money or a lot of money. Here are some resources and ideas to keep your children busy this summer without the cost.

Local parks—most communities have at least one park for their residents with playground equipment and bike trails. Most kids beg to go, even if they have a swing set of their own. Fly a kite, bring your bikes, or go exploring. Some parks even have tennis courts and basketball courts open all the time—this is good for older kids.
Lake or Pool—some communities have lake or pool access through the recreation department. Fees are typically pretty low for the summer, but it pays for a lifeguard. They may offer free swim lessons. Check with the high school in your town if they have a pool. It may be open to residents at certain times.
Library—there are so many programs available for all ages. It’s not like the library you may remember when you were a kid. Besides having videos and DVDs available for checking out (for free!), some libraries even have family movie nights. It’s definitely worth it to check out, plus kids usually love getting a library card and picking out their own books.
Volunteer—with so many different organizations needing help, there’s no excuse for not teaching kids, especially teens, the value of helping others. It’s also a great way to meet interesting people and make new friends and contacts.
Play with what you already have—everyone has toys, games, paints, and puzzles just waiting for someone to play with. Kids just need a little push and enthusiasm to get interested. Make paper airplanes or look online for other craft ideas.

rying to keep kids active over the summer without breaking your budget will benefit your whole family and set a good example that you don’t need a lot of money to have fun.

Debt Consolidation
Get out of debt now! Our
Debt Management program
Will consolidate your debts
and lower your interest rate
www.christianstewardship.net

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit organization dedicated to helping consumers achieve financial wellness through counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and credit counseling. Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Christian Credit Counseling • Debt Education Consolidation • Christian Debt Management • Bill Consolidation • Debt Management Service • Credit Card Counseling • Debt Management Solution

Credit Card Help Button!

San Diego Appraisals

Thank You
For A Free Consultation CALL: 1-866-767-9155

debt management solutions

settlemydebt — Mon, 29 Oct 2007 17:49:14 +0000

Energy Costs: Staying Cool Without Burning Through Your CashKeeping your budget in check is definitely a priority this summer, but one area that can be a particular challenge is your home energy bill. Running the air conditioner can be a drain on your finances, but you still want to be able to enjoy the summer without going broke. Here are some tips to help you save money and stay cool.

Maintain your cooling system—this can reduce energy costs up to 10%. Make sure the air condition unit is running efficiently by cleaning and replacing clogged air filters and coils. Dirt build-up on the indoor coil is the most common cause of poor efficiency. Have your system inspected if necessary.
Adjust your thermostat when you leave the house, especially if you leave for an extended period.
Invest in a programmable thermostat that automatically adjusts the temperature for the hours when no one is home.
Keep the drapes closed and shades down to block the sun and heat.
Shade the air conditioner unit from the sun.
Shade your home. A well-placed tree can block the sun.
At night, ventilate with a fan.
Avoid running a dehumidifier at the same time as the AC. The dehumidifier will cause the cooling load to increase and make the air conditioner work harder.
Keep lamps and TV’s away from the thermostat—they make heat and will cause the air conditioner to run more than necessary.
Remember to turn off lights, TV’s, and other appliances when not in use.
Close off any unused rooms.
Do an energy audit to help detect any potential problems regarding your cooling system. Many utility companies will do a free or low cost walk-through to evaluate where you could save energy.
If you’re on a fixed income and have trouble paying your utility bills, contact your utility company. They may have energy assistance plans to help.

Debt Consolidation
Get out of debt now! Our
Debt Management program
Will consolidate your debts
and lower your interest rate
www.christianstewardship.net

About Christian Credit One, Inc.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and credit counseling. Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Christian Credit Counseling • Debt Education Consolidation • Christian Debt Management • Bill Consolidation • Debt Management Service • Credit Card Counseling • Debt Management Solution

Credit Card Help Button!

San Diego Appraisals

Thank You
For A Free Consultation CALL: 1-866-767-9155